Initiative and referendum publicity pamphlet, pamphlets containing measures to be submitted to the electors of Arizona.

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State of Arizona
INITIATIVE AND REFERENDUM
PUBLICITY PAMPHLET'
1933
Containing a Copy of the
PROPOSED AMENDMENTS TO THE CONSTITUTION
Referred to the People by the Legislature.
Proposed by Initiative Petition of the People
REFERENDUM
Ordered by Petition of the People
To be Submitted to the Qualified Electors of the State of Arizona
for Their Approval or Rejection at the
GENERAL ELECTION, OCTOBER 3rd, 1933
Together with the Arguments,filed, favoring and opposing certain.
of said measures.
Compiled and Issued By
JAMES H. KERBY, Secretary of State
(Publication authorized under Paragraph 1746, Chapter 34, Article
1, Revised .Code of Arizona, 1928)
~·18
...
2 PAMPHLET CONTAINING AMENDMENTS AND MEASURES. TO BE
.\ '!>
To be submitted to the qualified electors of the State of Arizona fOI
'" ,..' their approval or rejection at the
GENERAL ELECTION
to be held
ON OCTOBER 3rd, 1933
Referred to the people by the Legislature and filed in the office of
the Secretary of State, March 1st, 1933, 'and printed in pursuance
of Paragraph 1746, Chapter 34, Article 1, Revised Code of Arizona
1928.
JAMES H. KERBY, Secretary of State.
(On Official Ballot Nos. 100-10l)
CHAPTER 23
(HOUSE BILL NO. 36)
ELEVENTH LEGISLATURE, Regular Session.
(Amended under provisions of Chapter 5, House Bill No.8, First
Special Session, Eleventh Legislature.)
CHAPTER 23
<H. B. No. 36)
AN ACT
PROPOSING TO AMEND SECTION 3, ARTICLE XII, CONSTI­TUTION
OF ARIZONA, RELATING TO TERMS OF OFFICE OF
COUNTY OFFICERS. •
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF
ARIZONA:
Section 1. It is he.reby proposed to amend section 3, article
xn, constitution of Arizona, to read as follows:
Sec. 3. Subject to change by law, there are hereby created
in and for each organized county of the state, the follOWing officers,
who shall be elected by the qualified electors thereof: Sheriff, re­corder,
treasurer, county attorney, assessor, three supervisors, and a
school superintendent, each of whom shall be elected for a term of
-------~ ~'
SUBMITTED TO THE ELECTORS OF ARIZONA, OCTOBER 3, 1933
'743
3
PROPOSED BY THE LEGISLATURE
"FOUR YEAR TERM FOR COUNTY OFFICERS"
PROPOSED AMENDMENT TO THE CONSTITUTION
le07~
/0549'
101 No. 0
100 Yes. D
If you favor the above law, vote YES; if opposed, vote NO.
four years, and such officers elected at the general election in 1934
shall serve until the first Monday in January, 1939.
JAMES H. KERBY, Secretary of State.
Sec. 2. When said proposed amendment shall be approved by
a majority of the members elected to each house of the legislature,
and shall be entered on the journal of each house, together with
the ayes and nays thereon, the secretary of state shall submit such
proposed amendment to a vote of the people at the next general
election, or at a special election, if the legislature shall call a special
election for the purpose of haVing proposed amendment voted upon.
Passed the Senate February 25th, 1933.
Passed the House January 24th, 1933.
Filed March 1st, 1933.
The following is the form and number in which the Question
will be printed on the Official Ballot.
AN ACT PROPOSING TO AMEND SECTION 3, ARTICLE XII.
CONSTITUTION OF ARIZONA. RELATING TO TERMS OF OFFICE
OF COUNTY OFFICERS.
4 PAMPHLET CONTAINING AMENDMENTS AND MEASURES, TO BE
To be submitted to the qualified electors of the state of Arizona for
their approval or rejection at the
GENERAL ELECTION
to be held
ON OCTOBER 3rd, 1933.
Referred to the people by the Legislature and filed in the office of
the Secretary of State, March 15th, 1933, and printed in pursuance
of Paragraph 1746, Chapter 34, Article 1, Revised Code of Arizona,
1928.
JAMES H. KERBY, Secretary of State.
(On Official Ballot Nos. 102-1.(3)
HOUSE JOINT RESOLUTION 4
ELEVENTH LEGISLATURE, Regular Session.
(Amended under provisions of Chapter 5, House Bill No.8, First
Special Session, Eleventh Legislature)
HOUSE JOINT RESOLUTION 4
(Proposing an amendment to the Constitution of Arizona providing
for the infliction of the judgment of death by administering
lethal gas.)
Resolved, by the legislature of the state of Arizona, in regular
session assembled, that the following amendment to the Gonstitu­tion
of Arizona, to be designated Sec. 22, Art. XXII thereof, be, and
hereby is proposed, to become valid as a part of said constitution
when approved and ratified by a majority of the qualified electors
voting thereon:
Sec. 22. The judgment of death shall be inflicted by admin­istering
lethal gas. The execution shall take place within the limits
Df the state prison.
Resolved, further, that when the proposed amendment, as em­bodied
herein, shall be approved by a majority of the members
elected to each house of the legislature, and shall be entered on
the journal of each house, together with the ayes and nays there­on,
the secretary of state shall submit the proposed amendment
-
SUBMITTED TO THE ELECTORS OF ARIZONA, OCTOBER 3, 1933 5
to the qualified electors at the next regular general election, as
provided by Art. XXI, constitution of Arizona.
Passed the House, February 18th, 1933.
Passed the Senate, March 13th, 1933.
Filed March 15th, 1933.
JAMES H. KERBY, Secretary of state.
The following is the form and number in which the question will
be printed on the Official Ballot.
PROPOSED AMENDMENT TO THE CONSTITUTION
PROPOSED BY THE LEGISLATURE
"JUDGMENT OF DEATH BY ADMINISTERING LETHAL GAS"
HOUSE JOINT RESOLUTION 4 (PROPOSING AN AMENDMENT
TO THE CONSTITUTION OF ARIZONA PROVIDING FOR THE IN­FLICTION
OF THE JUDGMENT OF DEATH BY ADMINISTERING
LETHAL GAS).
If you favor the above law, vote YES; if opposed, vote NO.
102 Yes.D
103 No. 0
14-'399
6 PAMPHLET CONTAINING AMENDMENTS AND MEASURES, TO BE
To be submitted to the qualified electors of the State of Arizona for
their approval or rejection at the
GENERAL ELECTION
to be held
ON OCTOBER 3rd, 1933.
Referred to the people by the Legislature and filed in the office
of the Secretary of State, March 15th, 1933, and printed in pursu­ance
of Paragraph 1746, Chapter 34, Article 1, Revised Code of Ari­zona,
1928.
JAMES H. KERBY, Secretary of State.
(On Official Ballot Nos, 104-1(5)
CHAPTER 43
(HOUSE BILL NO. 32)
ELEVENTH LEGISLATURE, Regular Session.
(Amended under provisions of Chapter 5, House Bill No.8, First
Special Session, Eleventh Legislature.)
CHAPTER 43
(HOUSE BILL NO. 32)
AN ACT
PROPOSING TO AMEND SECTION 1, OF ARTICLE 5, OF THE
CONSTITUTION OF THE STATE OF ARIZONA, RELATIVE TO THE
EXECUTIVE DEPARTMENT.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF
ARIZONA:
Section 1. That it is hereby proposed to amend Sec. 1, of Art.
5, of the Constitution of the State of Arizona, to read as follows:
Sec, 1. The executive department of the state shall consist
of governor, secretary of state, state aUditor, state treasurer, at­torney
general and state superintendent of public instruction, each
of whom shall hold office for four years, beginning on the first
Monday in January next after his election. The terms of office
1--..-----
SUBMITTED TO THE ELECTORS OF ARIZONA, OCTOBER 3,1933 7
of those elected at the general election in 1934 shall begin on the
first Monday in January, 1935, and shall end on the first Mon­day
in January, 1939, or when their successors are elected and
qualified.
The persons, respectively, having the highest number of votes
cast for the office voted- upon shall be elected; but if two or more
persons shall have an equal and the highest number of votes for
anyone of said offices, the two houses of the legislature at its next
regular session shall elect, by joint ballot, one of such persons for
said office.
The officers of the executive department, during their terms
of office, shall reside at the seat of government, where. they shall
keep their offices and the public records, books and papers. They
shall perform such duties as are prescribed by this constitution, and
as may be provided by law.
Sec. 2. When said proposed amendment shall be approved
by a majority of the members elected to each of the two houses. it
shall be entered on the journal of each house, together with the
ayes and nays thereon. The secretary of state shall submit such
proposed amendment to a vote of the people at the next general
election, or at a special election, if the legislature shall call a spe­cial
election, for the purpose of having proposed amendments voted
upon.
Passed the House January 24th, 1933.
Passed the Senate March 8th, 1933.
Filed March 15th, 1933.
JAMES H. KERBY, Secretary of State.
The following is the form and number in which the question
will be printed on the Official Ballot.
PROPOSED AMENDMENT TO THE CONSTITUTION
PROPOSED BY THE LEGISLATURE
"FOUR YEAR TERM FOR STATE OFFICERS"
8 PAMPHLET CONTAINING AMENDMENTS AND MEASURES, TO BE
If you favor the above law, vote YES; if opposed, vote NO.
104 Yes. /0151 D
AN ACT PROPOSING TO AMEND SECTION 1 OF ARTICLE
5 OF THE CONSTITUTION OF THE STATE OF ARIZONA, RELA­TIVE
TO THE EXECUTIVE DEPARTMENT.
105 No. D )'7537
-
1...·4": . I. I / '.•l...~ '1"., "a
SUBMITTED TO THE ELECTORS OF ARIZONA OCTOBER a. 19BB 9
To be submitted to the qualified electors of the State of Arizona for
their approval or rejection at the
GENERAL ELECTION
to be held
ON OCTOBER 3rd, 1933
Referred to the people by the Legislature and filed in the office
of the Secretary of State, March 16th, 1933, and printed in pursu­ance
of Paragraph 1746, Chapter 34, Article 1, Revised Code of Ari­zona,
1928,
JAMES H. KERBY, Secretary of State.
(On Official Ballot Nos. 106-107)
CHAPTER 59
(HOUSE BILL NO.,33)
ELEVENTH LEGISLATURE, Regular Session.
(Amended under :;>rovisions of Chapter 5, House Bill No.8, First
Special Session, Eleventh Legislature.)
CHAPTER 59
<HOUSE BILL NO. 33)
AN ACT
PROPOSING TO AMEND SECTION 11 OF ARTICLE VII OF
THE CONSTITUTION OF THE STATE OF ARIZONA, RELATIVE
TO GENERAL ELECTIONS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF
ARIZONA:
Section 1. That it is hereby proposed to amend Sec. 11 of Art.
VII of the Constitution of the state of Arizona to read as follows:
Sec. 11. There Shall be a general election on the first Tues­day
after the first Monday in November, 1934, and biennially there­after.
At each general election there shall be elected a represen­tative,
or representatives, in Congress, and such other officers as
by this Constitution, or by law, are required to be elected at such
time.
I
10 PAMPHLET CONTAINING AMENDMENTS AND MEASURES, TO BE
Sec. 2. When said proposed amendment shall be approved by
a majority of the members elected to each of the two houses, it
shall be entered on the journal of each house, together with the
ayes and nays thereon. The secretary of state shall submit such
proposed amendment to a vote of the people at the next general
election, or at a special election, if the legislature shall call a spe­cial
election, for the purpose of having proposed amendments voted
upon.
Passed the House, January 24th, 1933.
Passed the Senate, March 8th, 1933.
Filed March 16th, 1933.
JAMES H. KERBY, Secretary of State.
The following is the form and number in which the question
will be printed on the Official Ballot.
PROPOSED AMENDMENT TO THE CONSTITUTION
PROPOSED BY THE LEGISLATURE
"GENERAL ELECTIONS"
AN ACT PROPOSING TO AMEND SECTION 11 OF ARTICLE
VII OF THE CONSTITUTION OF THE STATE OF ARIZONA, REL­ATIVE
TO GENERAL ELECTIONS.
If you favor the above law, vote YES; if opposed, vote NO.
106 Yes. D 858'7
107 No. 0 j 39 ~G
751
SUBMITTED TO THE ELECTORS OF ARIZONA, OCTOBER 3, 1933 11
To be submitted to the qualified electors of the state of Arizona. for
their approval or rejection at the
GENERAL ELECTION
to be held
ON OCTOBER 3rd, 1933.
Referred to the people by the Legislature and filed in the office
of the Secretary of State, June 23rd, 1933, and printed in pursuance
of Paragraph 1746, Chapter 34, Article 1, Revised Code of Arizona,
1928.
JAMES H. KERBY, secretary of State.
(On Official Ballot Nos. 108-109)
CHAPTER 6
(HOUSE BILL NO. 31)
ELEVENTH LEGISLATURE, First Special Session.
AN ACT
PROPOSING TO AMEND ARTICLE XIX, CONSTITUTION OF
ARIZONA, RELATING TO THE OFFICE OF MINE INSPECTOR,
AND PROVIDING FOR A SPECIAL ELECTION THEREON.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF
ARIZONA:
Section 1. It is hereby proposed to amend Art. XIX, of the
Constitution of the State of Arizona to read as follows:
ARTICLE XIX.
"The office of mine inspector is hereby established. The leg­islature
shall enact laws so regulating the operation and equipment
of all mines in the state as to provide for the health and safety of
workers therein and in connection therewith, and fixing the duties
of said office. The mine inspector shall be elected at the general
election at which executive officers of the state are elected and
who shall serve for four years and until his successor shall be
elected and shall qualify."
12 PAMPHLET CONTAINING AMENDMENTS AND MEASURES, TO BE
Sec. 2. When said proposed amendment shall be approved
by a majority of the members elected to each house of the legis­lature
and shall be entered on the journal of each house, together
with the ayes· and nays thereof, the secretary of state shall sub­mit
such proposed amendment to a vote of the people at a special
election, which is hereby called for the third day of October, 1933,
for the purpose of having such proposed amendment voted upon.
Passed the House June 23, 1933.
Passed the Senate June 23, 1933.
Filed June 23, 1933.
JAMES H. KERBY, Secretary of State.
The following is the form and number in which the question
will be printed on the Official Ballot.
PROPOSED AMENDMENT TO THE CONSTITUTION
PROPOSED BY THE LEGISLATURE
"FOUR YEAR TERM FOR MINE INSPECTOR"
AN ACT PROPOSING TO AMEND ARTICLE XIX, CONSTITU­TION
OF ARIZONA, RELATING TO THE OFFICE OF MINE IN­SPECTOR,
AND PROVIDING FOR f>.. SPECIAL ELECTION THERE­ON.
If you favor the above law. vote YES; if opposed, vote NO.
108 Yes. D
109 No. 0
C}771
i-s-------
SUBMITTED TO THE ELECTORS OF ARIZONA, OCTOBER 3, 1933 13
To be submitted to the qualified electors of the State of Arizona for
their approval or rejection at the
GENERAL ELECTION
to be held
ON OCTOBER 3rd, 1933.
Re'ferred to the people by the Legislature and filed in the of­fice
of the Secretary of State, June 26th, 1933, and printed in pursu­ance
of Paragraph 1746, Chapter 34, Article 1, Revised Code of Ari­zona,
1928.
JAMES H. KERBY, Secretary of State.
(On Official Ballot Nos. 110-111)
HOUSE CONCURRENT RESOLUTION 6
ELEVENTH LEGISLATURE, First Special Session.
HOUSE CONCURRENT RESOLUTION 6
(Proposing an amendment to section 21, part 2, article IV, consti­tution
of Arizona, relating to terms of office of members
of the legislature.)
Be it resolved by the Legislature of the State of Arizona:
It is hereby proposed that section 21, part 2, article IV, consti­tution
of Arizona, relating to the terms of office of members of the
legislature, be amended to read as follows:
Section 21. The members of the Legislature shall be elected
at the general election, at which executive officers of the State are
elected, and shall serve for four years, beginning on the first Mon­day
in January next after such election.
Be it further resolved, that when the propos(!d amendment shall
be approved by a majority of the members elected to each house of
the legislature, and shall be entered on the journal of each house,
together with the ayes and nays thereon, the secretary of state'
shall submit the proposed amendment to the qualified electors at;
the next regular general election, or at an election, if one be calledl
for the purpose of having proposed amendments to the constItu­tion
voted upon, and said proposed amendment shall become valid!
r';i .t~; ,'.$. e {:)J~-
14 PAMPHLET CONTAINING AMENDMENTS AND MEASURES. TO BE
as a part of said constitution when approved and ratified by a llla~
jority of the qualified electors voting thereon, as provided by ar­ticle
XXI, constitution of Arizona.
Passed the Senate June 26, 1933.
Passed the House June 24, 1933.
Filed June 26, 1933.
JAMES H. KERBY, Secretary of State.
The following is the form and number in which the question
will be printed on the Official Ballot.
PROPOSED AMENDMENT TO THE CONSTITUTION
PROPOSED BY THE LEGISLATURE
"FOUR YEAR TERM FOR MEMBERS OF THE LEGISLATURE"
HOUSE CONCURRENT RESOLUTION 6 (PROPOSING AN
AMENDMENT TO SECTION 21, PART 2, ARTICLE IV, CONSTITU­TION
OF ARIZONA, RELATING TO TERMS OF OFFICE OF MEM­BERS
OF THE LEGISLATURE),
If you favor the above law, vote,YES; if opposed, vote NO.
110 Yes. D
111 No. D
BfSS
1574-6
.--------
SUBMITTED TO THE ELECTORS OF ARIZONA, OCTOBER 3, 1933 Hi
To be submitted to the qualified electors of the state of Arizona tor
their approval or rejection at the
GENERAL ELECTION
to be held
ON OCTOBER 3rd, 1933.
Referendum ordered by petition of the People and filed in the
office of the Secretary of State, June 1st, 1933, and printed in pur­suance
of Paragraph 1746, Chapter 34, Article 1, Revised Code of
Arizona, 1928.
JAMES H. KERBY, Secretary of State.
(On Official Ballot Nos. 300-301)
CHAPTER 94
(HOUSE BILL NO. 245)
ELEVENTH LEGISLATURE, Regular Session.
AN ACT
TO PROVIDE FOR CONVENTIONS TO PASS ON AMEND­MENTS
TO THE CONSTITUTION OF THE UNITED STATES PRO­POSED
BY THE CONGRESS OF THE UNITED STATES FOR RATI­FICATION
BY CONVENTIONS IN THE SEVERAL STATES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF
ARIZONA:
Section 1. Whenever the Congress of the United States shall
propose an amendment to the Constitution of the United States,
and shall propose that it be ratified by conventions in the several
states, the governor shall fix by proclamation the date of an elec­tion
for the purpose of electing the delegates to su(;h convention in
this state. Such election may either be at a special election or may
be held at the same time as a general election, but shall be held
at least as soon as the next special or general election occurring
more than three months after the amendment has been proposed by
the Congress.
Sec. 2. At such election all electors who have registered
may vote. Should a special election be called, registration 01 voters
16 PAMPHLET CONTAINING AMENDMENTS AND MEASURES, TO BE
shall be re-opened by the county recorder on the third Monday
preceding such special election, and shall be closed at five o'clock
P. M. on the Saturday following next thereafter. All electors who
were registered at the last general election, or who are registered
during the period registration is re-opened for such special election
may vote at such special election. '
Sec. 3. Except as in this act otherwise provided, such elec­tion
shall be conducted and the results thereof ascertained and cer­tified
in the same manner as in the case of the election of state of­ficers
in this state, and all provisions of the laws of this state rela­tive
to elections except so far as inconsistent with this act are
hereby made applicable to such election.
Sec. 4. The number of delegates to be chosen as such con­vention
shall be eleven to be elected from the state at large.
Sec. 5. Candidates for the office of delegate to the conven­tion
shall be qualified electors'of this state. Nominations shall be
by petition signed by not less than one thousand qualified electors,
and not otherwise. Nominations shall be without party or political
designation, but the nominating petitions shall contain a statement
by the nominee to the effect that he favors ratification, or that he
opposes ratification, and no nominating petition shall be accepted
unless such statement is contained therein. No nomination shall
be effective except those of the eleven nominees in favor of the rati­fication
and the eleven nominees against ratification, whose nomi­nating
petitions were first filed wit):J. the secretary of state. With­in
ten days after the petitions are filed, the secretary of state shall
certify the candidates of each group to the board of supervisors
of the respective counties of this state. All petitions shall be filed
with the secretary of state not less than twenty days before the
proclaimed date of the election.
Sec. 6. The election shall be by ballot, separate from any
ballot to be used at the same election, which shall be prepared. as
follows: It shall first state the substance of the proposed amend­ment.
This shall be followed by appropriate instructions to
the voters. It shall then contain perpendicular columns of equal
width, headed respectively in plain type, "For Ratification", and
"Against Ratification". In the column headed "For Ratification"
shall be placed the names of the nominees norninated as in favor
of ratification. In the column headed "Against Ratification" shall
.be placed the names of the nominees nominated as against ratifi­.
cation. The voter shall indicate his choice by making one or more
cross marks in the appropriate spaces provided on the ballot. No
;
SUBMITTED TO THE ELECTORS OF ARIZONA, OCTOBER 3, 1933
757
17
ballot shall be held void because any such cross mark 1s irregula.r 1n
character. The ballot shall be so arranged that the voter may, by
making a single cross mark, vote for the entire group of the nomi­nees
whose names are comprised in any column. The ballot shall
be in substantially the following form:
PROPOSED AMENDMENT TO THE CONSTITUTION OF
THE UNITED STATES
The Congress has proposed an amendment to the Constitution
of the United States which provides (insert here the substance of
the proposed amendment).
The Congress has also proposed that the said amendment shall
be ratified by conventions in the states.
INSTRUCTIONS TO VOTERS
Do not vote for more than eleven (11) candidates.
To vote for all candidates in favor of ratification, or for all
candidates against ratification, make a cross-mark in the CIRCLE
at the head of the list of candidates for whom you wish to vote. I~
you do this, make no other mark.
To vote for an individual candidate, make a cross-mark in the
SQUARE at the left of the name.
FOR RATIFICATION o
oJohn Doe
D Richard Roe
D
AGAINST RATIFICATION o
D Charles c~e
D Michael Moe
D
Sec. 7. The eleven nominees who shall receive the highest
number of votes shall be the delegates at the convention. If there
shall be a vacancy in the convention caused by the death or dis-a
18 PAMPHLET CONTAINING AMENDMENTS AND MEASURES, TO BE
ability of any delegate, or any other cause, the same shall be filled
by appointment by the majority vote of the delegates comprising
the group from which such delegate was elected and if the Con­vention
contains no other delegate of that group, shall be filled by
the governor. Delegates elected upon a platform or nomination
petition statement as for or against ratification, must vote at such
convention in accordance with such platform or nomination peti­tion
,statement, and upon failure to do so will be guilty of a mis­demeanor,
his vote not considered, and his office will be deemed
vacant, to be filled as herein provided for filling vacancies.
Sec. 8. The delegates to the convention shall meet at the
capitol on the twenty-eighth day after their election, at 10:00
o'clock A. M. and shall thereupon constitute a Convention to pass
upon the question of whether or not the proposed amendment shall
be ratified.
Sec. 9. The convention shall be the judge of the election
and qualification of its members; and shall have power to elect its
president, secretary and other officers, and to adopt its own rules.
Sec. 10. The convention shall keep a journal of its pro­ceedings,
in which shall be recorded the vote of each delegate on
the question of ratification of the proposed amendment. Upon
final adjournment the journal shall be filed with the secretary of
state.
Sec. 11. If the convention shall' agree, by vote of a major­ity
of the total number of delegates, to the ratification of the pro­posed
amendment, a certificate to that effect shall be executed by
the president and secretary of the convention and transmitted to
the secretary of state of this state, who shall transmit the certi­ficate,
under the great seal of the state to the secretary of state of
the United States.
Sec. 12. Delegates shall receive ten dollars, and shall also
receive mileage one way by the shortest practical route at the rate
of twenty cents per mile.
Sec. 13. If at or about the time of submitting any such
amendment, Congress shall either in the resolution submitting the
same or by statute, prescribe the manner in which the conventions
shall be constituted, and shall not except from the provisions of
such statute or resolution such states as may theretofore have pro­vided
for constituting such conventions, the preceding provisions
of this act shall be inoperative, the convention shall be constituted
and shall operate as the said resolution or act of Congress shall
SUBMITTED TO THE ELECTORS OF ARIZONA, OCTOBER 3,1933 19
direct, and all officers of the state who may by the said resolu­tion
or statute be authorized or directed to take any action to con­stitute
such a convention for this state are hereby authorized and
directed to act thereunder and in obedience thereto with the same
force and effect as if acting under a statute of this state.
The following is the form and number in which the question
will be printed on the Official Ballot.
REFERENDUM ORDERED BY PETITION OF THE PEOPLE
"TO PROVIDE FOR CONVENTIONS TO PASS ON AMEND­MENTS
TO THE CONSTITUTION OF THE UNITED STATES"
AN ACT TO PROVIDE FOR CONVENTIONS TO PASS ON
AMENDMENTS TO THE CONSTITUTION OF THE UNITED STATES
PROPOSED BY THE CONGRESS OF THE UNITED STATES FOR
RATIFICATION BY CONVENTIONS IN THE SEVERAL STATES.
If you favor the above law, vote YES; if opposed, vote NO.
300 Yes.
301 No.
(On Official Ballot Nos. 302-303)
AN ACT
to be held
RELATING TO TAXATION, AND TO PROVIDE FOR A GRAD­UATED
TAX ON NET INCOMES.
ELEVENTH LEGISLATURE, Regular Session.
(SENATE BILL NO. 16)
CHAPTER 39
ON OCTOBER 3rd, 1933.
GENERAL ELECTION
To be submitted to the qualified electors of the state of Arizona for
their approval or rejection at the· .
20 PAMPHLET CONTAINING Al'tiENDMENTS AND MEASURES, TO BE
JAMES H. KERBY, Secretary of State.
Referendum ordered by petition of the People and filed in the
office of the Secretary of state, June 10th, 1933, and printed in pur­suance
of Paragraph 1746, Chapter 34, Article 1, Revised Code of
Arizona, 1928.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF
ARIZONA:
Section 1. CITATION. This act may be cited as "the income
tax act of 1933."
Sec. 2. PERSONS TAXABLE. Every person residing within
the state, or in case of death his personal representative, shall pay
a tax on net income, and every nonresident shall pay a tax on such
net income as is derived from property located or business trans­acted
within the state. Said tax shall be assessed, levied and col­lected
as hereinafter provided.
Sec. 3. OBJECT OF TAX. The object for which the said
tax is imposed is to assist in defraying the cost of maintenance of
the state government, and to lessen the burden in this regard rest­ing
upon tangible property.
SUBMITTED TO THE ELECTORS OF A~IZONA,OCTOBER 3, 1933 21
Sec. 4. DEFINITIONS. For the purposes of this act:
(a) "Person" shall mean and include natural persons, fiducia.­ries
and corporations.
'b) "Corporation" shall mean and include all corporations,
joint stock companies and associations, as defined by section 577,
Revised Code of 1928, and all corporations, copartnerships, and asso­ciations,
whether incorporated or unincorporated, as defined by
section 1887, Revised Code of 1928, unless otherwise expressly stated.
(c) "Head of a family" shall mean a natural person who main­tains
a household ar.d supports therein himself and one or more
persons dependent upon him.
(d) "Resident" or "residing within the state," shall mean a
natural person domiciled within the state, who maintains a per­manent
place of abode or spends in the aggregate not less tha.n
seven months of the income year within the state.
(e) "Income year" shall mean the calendar year or corre­sponding
fiscal year.
(f) "Years open to audit" shall mean the five successive in­come
years next preceding the last income year for which the in­come
of any person has been assessed, and any income year for
which no report of income was made.
(g) "Value" shall mean the fair market value.
(h) "Tax commission" or "commission" shall mean the state
tax commission.
(i) "Treasurer" or "treasury" shall mean the treasurer or the
treasury of Arizona.
(j) "Net income" shall mean gross income less allowable de­ductions.
(k) "Gross income" is defined in section 6.
Sec. 5. ADMINISTRATION. The state tax commISSIon shall
administer and enforce the provisions of this act.
(a) The commission may from time to time make such rules
and regulations, not inconsistent with this act, as it may deem
necessary.
(b) In addition to all other powers of assessment granted it
by law, the commission shall possess the power to aSsess incomes.
22 PAMPHLET CONTAINING AMENDMENTS AND MEASURES, TO BE
(c) For the purpose of ascertaining the correctness of any re­port
of income, or making an estimate of the taxable income of any
taxpayer, the commission shall have power to examine or cause to
be examined by any agent or representative, any books, papers, rec­ords,
or memoranda, bearing upon the matters required to be in­cluded
in the report, including a copy of the taxpayer's current in­come
tax return to the United States government, and all amend­ments
to said return, whether arrived at by compromise or adjudi­cation,
after hearing and final determination by the Federal gov­ernment,
and to require the attendance of the taxpayer or of any
other person having knowledge in the premises, administer oaths
take testimony and require proof material for its information, b;
the same means and in the same manner as allowed to courts of
record. If any person summoned to appear to testify or to produce
books, papers, records, or other data, shall refuse to do so, the su­perior
court for the county in which such person resides shall have
jurisdiction by appropriate process to compel such attendance,
testimony, or production of books, papers, records, or other data.
(dl All agents or representatives of the commission shall, for
identification purposes, have credentials signed by the commission
and countersigned by the governor.
(e) The commission shall ,have power to appoint and employ
such agents, specialists and clerks, within the limits of appropria­tions
and compensation prescribed by law, as it may deem neces­sary
to fully effectuate the purposes of this act.
Sec. 6. GROSS INCOME. "Gross income" shall include:
(a) Rent of Arizona real estate.
(b) Dividends derived from stocks, whether paid in cash or
property.
(c) Interest derived from money loaned or invested in notes,
mortgages, bonds, or other evidence of debt.
(d) Wages, salaries or fees derived from services.
(e) Profits derived from the transaction of business or from
the disposition of real estate or other capital assets.
(f) Royalties derived from mines, or the possession or use of
t
SUBMITTED TO THE ELECTORS OF ARIZONA, OCTOBER 3, 1933 23
fl'anchises or other legalized privileges.
(g) Life insurance paid to the insured, and insurance paid to
a corporation or partnership upon policies on the lives of its officers,
partners or employees, after deducting from such insurance the
cash surrender value thereof on January 1, 1933, and all net pre­miums
paid thereafter and not deducted on Arizona income tax re­turns,
provided, that when the wife or other surviving heir of the
insured is the beneficiary of a policy carried by, or on which the
premium is paid by a corporation or partnership on the life of a
stockholder or part owner therein, under an agreement whereby
in lieu of the insurance paid at death the corporation receives the
stock or interest of the insured in the business, the net gain of the
corporation or partnership shall be treated as gross income.
(h) All other gains, profits or income, subject to the exemp­tions
hereinafter provided.
Sec. 7. RATES; PERSONS OTHER THAN CORPORATIONS.
The tax to be assessed, levied and collected upon the taxable in­come
of persons other than corporations shall be computed at the
following rates:
(a) On the first one thousand dollars or any part thereof, one
per cent.
(b) On the second one thousand dollars or any part thereof,
one and one-fourth per cent.'
(c) On the third one thousand dollars or any part thereof,
one and one-half per cent.
(d) On the fourth one thousand dollars 'or any part thereof,
two per cent.
(e) On the fifth one thousand dollars or any part thereof, two
and one-half per cent.
(f) On the sixth one thousand dollars or any part thereof,
, three per cent.
(g) On the seventh one thousand dollars or any part thereof,
three and one-half per cent.
(h) On the eighth one thousand dollars or any part thereof,
four per cent.
24 PAlI<lPHLEl' CONTAINING AMENDMENTS AND MEASURES, TO BE
(l) On taxable income in excess of eleven thousand dollars.
five and one-half per cent.
(i) On the ninth one thousand dollars or any part thereof, four
and one-half per cent.
(d) On the fourth one thousand dollars or any part thereof,
three and one-half per cent.
(e) On the fifth one thousand dollars or any part thereof, four
per cent.
(c) On the third one thousand dollars or any part thereof,
three per cent.
(b) On the second one thousand dollars or any part thereof,
two and one-half per cent.
(a) On the first one thousand dollars or any part thereof, two
per cent.
(f) On the sixth one thousand dollars or any part thereof, five
per cent.
Sec. 8. RATES; CORPORATIONS. The tax to be assessed.
levied and collected upon the taxable income of corporations shall
be computed at the following rates:
(j) On the tenth one thousand dollars or any part thereof, five
per cent.
(k) On the eleventh one thousand dollars or any part there­of,
five and one-half per cent.
(g) On the seventh one thousand .dollars or any part thereof,
six per cent.
(h) On all taxable income in excess of seven thousand dollars,
six per cent.
Sec. 9. EXEMPTIONS. There shall be exempt from taxa­tion
under this act, income as follows:
(a) Pensions received from the United States.
(b) Inheritances, devises, bequests and gifts received during
the year.
SUBMITTED TO THE ELECTORS OF ARIZONA. OCTOBER 3,'i9j~~5
(c) Insurance received in payment of a death claim and con­tracts
paid by reason of the death of the insured, except insurance
paid to a corporation or partnership upon policies on the lives of
its officers, partners or employees, and except insurance (other than
amounts paid by reason of the death of the insured) received under
life insurance, endowment or annuity contracts, either during the
term or at maturity or upon surrender of the contract, equal to the
total amount of premiums paid thereon.
(d) Income of all religious, humanitarian, benevolent, scien­tific,
educational or other corporations or associations of individuals
not organized or conducted for pecuniary profit.
(e) Income received by the United states, the state and a.ll
counties, cities, Villages, school districts or other political units of
the state.
(f) Income of cooperative associations or corporations engaged
in marketing farm products for producers, as defined by chapter
13, Revised Code of 1928.
(g) Income of insurance companies which pay to the state a
tax upon premium income.
(h) Income of domestic insurance companies.
Sec. 10. DEDUCTIONS; ALL TAXPAYERS. Every tax­payer,
in reporting income for purposes of taxation, shall be en­titled
to the following deductions:
(a) Payments made within the year, if reasonable in amount,
for wages, salaries or compensation, including cash bonuses to em­ployees,
for services actually rendered in carrying on the business,
profession or occupation from which the income is derived; pro­vided,
and not otherwise, the taxpayer shall file a report as required
by section 16, subsection (d), paragraph 2,. and subsection (e). No
deduction shall be allowed under this section for amounts expended
for personal living or family expenses.
(b) other ordinary and necessary expenses actually paid with­in
the year in the maintenance and operation of the business, pro­fession
or occupation from which the income was derived.
(c)A reasonable allowance for depreciation by eXhaustion, wear
and tear, and depletion of the property from which the income was
derived.
\"""l.::'P' 6"0'0
26 PAMPHLET CONTAINING AMENDMENTS AND MEASURES, TO BE
(d) Losses actually sustained within the year and not Com_
pensated by insurance or otherwise; provided, that nO deductions
shall be allowed for loss resulting from the operation of business
conducted or the ownership of property located without the state
nor on the sale of property purchased and held for pleasure or rec~
reation and not acquired or used for profit, but this proviso shall
not be construed to exclude losses due to theft or to the destruction
of property by fire, flood or other casualty. No deduction shall be
allowed under this subsection for loss sustained in disposition of
shares of stock or of securities where it appears that within thirty
days before or after the date of such disposition the taxpayer ac­quired
(otherwise than by bequest or inheritance) or entered into
a contract or option to acquire substantially identical property, and
the property so acquired was held by the taxpayer for any period
after such disposition.
(e) Taxes other than special improvement taxes (and in the
case of persons other than corporations, inheritance taxes) paid
during the year upon the business or property from which the in­come
taxed is derived, including taxes imposed by the state of Ari­zona
and the United States government; provided, that income
taxes imposed by the state of Arizona shall, for the purposes of
this subsection, accrue only in the year in which such taxes are as­sessed;
and provided, further, that allowable deductions for federal
taxes shall be confined to cash payments made within the year
covered by the return, and if for income taxes shall be limited to
taxes paid on net income taxable under this act.
(f) Dividends, excepting such, as are specified in section 26,
subsections (b) and (c), received from a corporation the income oJ
which is subject to the law of this state, which has filed a report of
income as required by this act, and a report as required by section
16, subsection (d), paragraph 4, and the principal business of which
is attributable to Arizona. For the purpose of this subsection the
principal business of a corporation shall be considered attributable
to Arizona if fifty per cent or more of the entire net income or loss
of the corporation after adjustment for tax purposes, for the year
preceding the payment of such dividends, was used in computing
the average taxable income provided by this act. If the net incomes
of several affiliated corporations have been combined for the pur­pose
of determining the income subject to taxation, the location
of the principal bUSiness of such group shall determine the taxable
status of dividends paid, but inter-company dividends passing be­tween
affiliated corporations whose incomes are included in the
taxable income of the group, shall not be assessed as group income.
(g) Contributions or gifts made within the year to the state or
rf
'\"i~"'.','"'.",,""~,,,,,' ·.. ··,::"'0·:1
SUBMITTED TO THE ELECTORS OF ARIZONA, OCTOBER 3, 1933 27
any political subdivision thereof for exclusively public purposes, or
to corporations, community chest funds, foundations, or associa­tions
operating within the state, 0rganized and operated exclusive­ly
for religious, humanitarian, benevolent, scientific or educational
purposes, no part of the net income of which inures to the benefit
of any private stockholder or individual, to an amount not in ex-,
cess of ten per centum of the taxpayer's net income of the calen­dar
or fiscal year as computed without the benefit of this subsection.
r
Sec. 11. 'DEDUCTIONS; CORPORATIONS, In addition to
the deductions allowed in section 10, corporations shall be entitled
to the following deductions:
(a) Interest paid within the year in the operation of the busi­ness
from which the income is derived, prOVided, and not otherwise,
the taxpayer shall file the report required by section 16, subsec­tion
(d)'
(b) Amounts distributed to patrons in proportion to their pat­ronage,
by corporations doing business on a cooperative basis, may
be deducted as cost, purchase price or refunds, but no deduction
shall be made for distributions to stockholders or owners of any
such corporation in proportion to their stock or ownership, nor for
amounts retained and subject to distribution in proportion to stock
or ownership as distinguished from patronage. Amounts distributed
in proportion to patronage Shall be reported as income or receipts
by the persons to whom the distributions are made.
Sec. 12. DEDUCTIONS; PERSONS OTHER THAN COR­PORATIONS.
In addition to the deductions allowed in section 10,
persons other than corporations shall be entitled to the following
deductions:
(a) Inheritance taxes paid during the year with respect to the
business or property from which the income is derived.
(b) Interest paid within the year on existing indebtedness; pro­vided,
and not otherwise, the taxpayer shall file the report required.
by section 16, subsection (f). No deductions shall be allowed for in,­terest
paid on an indebtedness created for the purchase, mainten­ance
or improvement of property or the conduct of business the in­come
from which property or business would not be taxable under
this act.
(c) Interest paid within the year on existing indebtedness not
exceeding three thousand dollaJ;s, on the family home of the tax­payer;
provided, and not otherwise, the taxpayer shall file the re-
28 PAMPHLET CONTAINING AMENDMENTS AND MEASURES, TO BE
port required by section 16,. subsection (f).
(d) Taxes paid within the year on not to exceed five thousand
dollars of the assessed valuation of the family home of the tax­payer.
Sec. 13. DEDUCTION OF LOSSES. If a taxpayer in any
year subsequent to the year 1933 sustains a net business loss, such
loss may be offset against the net business income of the sUbse­quent
year, and if not thus completely offset, the remainder may
be offset against the net business income of the following year. For
the purposes of this section, net business income shall consist of all
income attributable to the operation of a trade or business regularly
carried on by the taxpayer, less the allowable deduction for busi­ness
expenses.
Sec. 14. DEDUCTIONS FROM NET INCOME TAX. There
shall be deducted from the tax after the same shall have been com­puted,
a personal exemption for natural persons, as follows:
(a) For an individual, eight dollars.
(b) For husband and wife or head of a family, seventeen dol­lars
and fifty cents, and for each dependent child under eighteen
years of age or other person dependent upon and entirely supported
by such husband and wife or head of a family, an additional four
dollars.
(c) To the head of a family, who is a widow or widower, for
each child under the age of eighteen years actually dependent upon
and supported by such taxpayer, an additional four dollars.
(d) For each person dependent upon and actually supported
by a taxpayer not the head of a family, an additional four dollars.
(e) For the purpose of computing taxes payable by persons
residing together as members of a family, the income of the wife
and of each child under eighteen years of age shall be added to that
of the husband or father if living or if not, to that of the head of
the family, and assessed to him except as hereinafter provided.
The taxes levied shall be payable by such husband or head of a fam­ily,
but if not paid by him may be enforced against any person
whose income is included within the computation.
(f) The personal exemptions provided by this section shall
be determined by the personal status of a taxpayer on the last day
~;'69
SUBMITTED TO THE ELECTORS OF ARIZONA, OCTOBER 3, 1933 29
of the last year included in the computation of income, except as
otherwise provided in this act.
Sec. 15. INCOME YEAR, CALENDAR OR FISCAL. (a)
Taxpayers who customarily determine their income on the basis of
an established fiscal year instead of on that of the calendar year,
may, with the approval of the commission, and subject to such rules
and regulations as it may establish, return their net income under
this act on the basis of such fiscal year, in lieu of that of the cal­endar
year; provided, that all fiscal years ending between July 1,
preceding and June 30 following the close of the calendar year shall
correspond to such calendar year for the purposes of this act. No
fiscal year shall end on a date other than the last day of a month.
(bl A taxpayer may, with the approval of the tax commis­sion,
and under such regulations as it may prescribe, change his
income year from the fiscal year to the calendar year or otherwise,
in which case- his net income shall be computed upon the basis of
such new income year.
(c) If the taxpayer, with the approval of the commIssion,
changes the income year on the basis of which his net income is
computed, he shall, at such time and in such manner as the com­mission
may prescribe, make a separate report of income for the
period interevening between the end of his former income year and
the beginning of his new income year.
Sec. 16. FILING REPORTS. .(al Every corporation, as
defined in section 4, whether taxable under this act or not; every
person other than a corporation who receives during the year a net
income of eight hundred dollars or over, if single, or sixteen hun­dred
dollars or over, if married, and every partnership shall, on or
before March 15, of each year (or if for a fiscal year ending on some
date other than December 31, within seventy-five days after the last
day of such fiscal year) file with the commission a report of Income
in such manner and form and setting forth such facts, necessary to
the enforcement of the provisions of this act,as the commission
shall prescribe.
<b) The report of a corporation, including investment com­pany
copartnerships, shall be made upon the oath or affirmation
of the president, Vice-president, or other principal officer and the
treasurer thereof, or if a corporation in liquidation or in the hands
of a receiver, upon the oath or affirmation of the person respon­sible
for the conduct of its affairs.
(c) The report of a person other than a corporation, and the
''?70 30 PAMPHLET CONTAINING AMENDMENTS AND MEASURES, TO BE
report of a partnership (other than an investment company co..
partnership) shall be made upon the oath or affirmation of a mem­ber
of such partnersh~p.
(d) Corporations doing business within the state shall also
file, with the report of income as provided herein, on forms pre­scribed
by the commission, the following reports:
1. Transfers of their capital stock made by or to residents of
the state during the income year, the names and addresses of sellers
and purchasers, dates of transfer, and number of shares of stock
transferred in each instance.
2. Names and addresses of and the amount paid to each officer
or employee residing within the state to whom seven hundred dol­lars
or more was paid for salaries, wages, fees, or bonuses, for serv­ices
actually rendered in carrying on the business, profession or oc­cupation
from which the income is derived.
3. The form of indebtedness on which, and the names and ad��dresses
of the creditors residing within the state to whom interest
was paid in the operation of the business from which the income
is derived.
4. Payments made, and the names and addresses of persons
residing within the state to whom dividends, or liquidating divi­dends
were paid.
5. Payments made, and the names and addresses of persons,
within or without the state, to whom payments were made for rents
or royalties on property situate within the state.
(e) Persons other than corporations claiming deductions for
salaries, wages, fees or bonuses paid for services shall file the re­port
required in subsection (d), paragraph 2, of this section
(f) Persons other than corporations, claiming deductions for
interest paid within the year on existing indebtedness, shall report
the form of the indebtedness, the names and addresses of creditors
to whom interest was paid, and the amount paid to each,
(g) Whenever in the judgment of the commission any per­son
other than a corporation is subject to income tax, or for any
reason ought to file a report of income, it shall notify such person
to make such report, and to include therein such information as the
commission shall prescribe. Failure to receive such notice shall not
excuse a person required to file a report of income,
SUBMITTED TO THE ELECTORS OF ARIZONA, OCTOBER 3,1933
(h) Married persons living together as husband and wife may
make separate reports or join in a single joint report of income.
(i) Upon written request therefor, the commission may, for
absence, sickness, or qther sufficient reason, extend the time, not
exceeding thirty days, for filing a report of income
Sec. 17. COMPUTATION OF TAXES (a) The assessment
of taxable incomes of the income year 1933 shall be based upon one­half
of the net income for the whole year 1932; provided, further,
that the deductions shall only be one-half of the deductions allowed
for the full year, and provided, further, that this provision shall ap­ply
only to the computation of income tax payable in 1933. There­after
the computation shall be based on the full net income of each
previous year.
(b) In the case of married persons living together as husband
and wife who make separate reports, the tax shall be computed
on the combined taxable income On request, a separate statement
or tax bill shall be issued to husband and wife. In such case the
deductions from net income tax shall be allowed but once and div­ided
equally, and the amount of tax due shall be paid by each in
the proportion that their separate incomes bear to the combined
income"
(c) Liability to taxation for income which follows the resi­dence
of a recipient shall, in the case of persons other than cor­porations
who move into or out of the state within the year, be
determined for such year by the ratio of time which the residence
of the taxpayer within the state bears to the entire calendar or
fiscal year
(d) Deductions for personal exemptions, as provided in sec­tion
14, shall be prorated on the basis of the time of residence with­in
and without the state.. The net income of the taxpayer assign­able
to the state for such year shall be used in determining the in­come
subject to assessment.
Sec, 18., PAYMENT OF TAX.. (a) All income taxes owing
to the state under the provisions of this act shall be due and pay­able
on March 15, following the close of the calendar year in which
the income accrued; provided that the income tax for the year 1933
based on one half of the net income for 1932, shall be due and pay­able
on June 15, 1933, and provided, that in the case of persons who
with the consent of the commission, make their report of income
on the basis of a fiscal year other than the calendar year, the tax
·:7·'11·,·'·..",,~ ,. },~
32 PAMPHLET CONTAINING AMENDMENTS AND MEASURES, TO BE
shall be due and payable seventy-five days after the close of such
fiscal year. The full amount o'f such tax, as the same shall appear
from the face of the report of income, may be paid to the commis_
sion when the report of income is filed, or on the day when the
same becomes due and payable, or the taxpayer may pay the same
in two installments, one-half on the date when the full amount, as
herein provided, shall become due and payable and the second half
ninety days ·after such date. For the purposes of this paragraph
the report of income upon which the tax is computed shall be pre­sumed
to be correct.
(b) In the event that an extension of time for filing a report
of income has been granted the time for payment of the first in­stallment
shall be postponed until the expiration of such extension.
but the time for payment of the second installment shall not be ex­tended
unless the extension shall specifically provide.
(c) When the time for the payment of any installment has
been extended, there shall be added to such installment interest
at the rate of eight per cent per annuum from the time when the
payment should have been made had no extention been granted, un­til
paid. If any installment is not paid when due the whole amount
of the tax unpaid shall become due and payable upon notice and
demand by the commission.
(d) The tax may be paid by uncertified check, but if a check
so received is not paid by the bank on which it is drawn, the tax­payer
shall remain liable for the payment of the tax and all legal
penalties, the same as if such tax had not been tendered.
Sec. 19.. METHOD OF ACCOUNTING; INVENTORIES;
KEEPING RECORDS. (a) Persons who customarily estimate their
incomes or profits on a basis of cash receipts and disbursements, or
other method of accounting which clearly reflects their taxable in­come,
may make their report of income in accordance with the meth­od
of accounting regularly employed by t~em; provided. that if the ­method
employed does not clearly reflect the taxable income the
computation shall be made upon a basis, and in such manner as in
the opinion of the commission will clearly reflect ~uch net income.
(b) "Paid" or "actually paid" are to be construed in the light
of the method used in computing taxable income, whether on the
accrual or receipt basis; provided, that deductions for federal taxes
shall be confined to cash payments made within the year covered
by the income tax return, and reserves for contingent losses or lia­bilities
shall not be deducted.
-~-~}~3
SUBMITTED TO THE ELECTORS OF ARIZONA, OCTOBER 3.1933 33
(c) Whenever in the opinion of the commission, the use of
inventories is necessary to clearly determine taxable income, in­ventory
shall be taken by the taxpayer upon such basis, conform­ing
as nearly as may be to the best accounting practice in the trade
or business and most clearly reflecting the income, as the commis­sion
may prescribe.
(d) Whenever in the judgment of the commission it is neces­sary
that a- person subject to an income tax should keep records to
show whether or not he is in fact liable to tax, the commission may
by notice served upon such person require records to be kept that
will disclose the entire net income of such person and enable the
commission to compute his taxable income. Thereafter, any taxes
assessed upon inf6:rmation not contained in such records shall carry
a penalty of twenty-five per cent of the amount of the tax, which
shall be in addition to all other penalties.
Sec. 20. CORPORATE TAX EVASION. (a) When any cor­poration
liable to taxation under this act conducts its business in
such a manner as either directly or indirectly to benefit the mem­bers
or stockholders thereof or any person interested in such busi­ness,
by selling its products or the goods or commodities in which
it deals at less than the fair price which might be obtained there­for,
or where a corporation, a substantial portion of whose capital
stock is owned either directly or indirectly by another corporation,
acquires and disposes of the products of the corporation so owning
a substantial portion of its stock in such a manner as to create a
loss or improper net income, the commission may determine the
amount of taxable income of such corporation for the income year,
having due regard to the reasonable profits which but for such
arrangement or understanding might or could have been obtained
from dealing in such products, goods or commodities..
(b) For the purposes ,of this act, whenever a corporation which
is required to file a report of income is affiliated with or related to
any other corporation through stock ownership by the same inter­ests
or as parent or subsidiary corporations, or whose income is
regulated through contract or other arrangement, the tax com­mission
may require such consolidated statements as in its opinion
are necessary in order to determine the taxable income received
by any of the affiliated or related corporations; provided, however.
that where eignty per cent or more of the stock is owned by the
parent corporation within the state, the net income may be com­puted
on the basis of the combined returns of all such subsidiary
corporations.
Sec. 21. SITUS OF INCOME. (a) Income from mercantHe
774
34 PAMPHLET CONTAINING AMENDMENTS AND MEASURES, TO BE
or manufacturing business not requiring apportionment under sec­tion
24, and income from rentals or royalties from real estate or
tangible personal property, or from the operation of any farm, mine
or quarry, or from the sale of real property or tangible personal
property, shall follow the situs of the business or property from
which derived. All other income, including royalties from patents
income from personal services, professions and vocations and fron{
land contracts, mortgages, stocks, bonds and securities or from the
sale of similar intangible personal property, shall follow the resi­dence
of the recipient, except as in this act otherwise specifically
provided.
Sec. 22. NON-RESIDENT FIDUCIARY; NON-RESIDENT
BENEFICIARY. A resident who receives income from a non-resi­dent
fiduciary shall be taxed the same as though such income had
been received without the intervention of a fiduciary. A resident
fiduciary receiving income from a non-resident beneficiary shall re­port
such income in accordance with the provisions of sections 21,
23 and 24.
Sec. 23. SEPARATE REPORTS. (a) Persons deriving in­come
from within and without the state shall make a separate re­port
of income derived from without the state, in the form and
manner prescribed by the commission.
(b) The entire taxable income of a person deriving income
from within and without the state shall, if such person resides
within the state, be combined and aggregated for the purpose of
determining the proper rate of taxation.
Sec. 24. APPORTIONMENT OF INCOME DERIVED FROM
WITHIN AND WITHOUT THE STATE. (a) Persons engaged in
business within and without the state shall be taxed only on such
income as is derived from business transacted and property located
within the state. The amount of such income apportionable to
Arizona may be determined by an allocation and separate account­ing
thereof when in the judgment of the cqmmission th.at method
will reasonably reflect the income properly assignable to this state.
Otherwise such income shall be determined by first deducting from
the total net income of the taxpayer such part thereof, less related
expenses, if any, as follows the situs of the property or the resi­dence
of the recipient (provided, that in the case of income which
follows the residence of the recipient, the amount of interest and
dividends deductible under this provision shall be limited to the
total interest and dividends received which are in excess of the
total interest, or related expenses if any, paid and allowable as a
deduction under sections 11 and 12 during the income year), and
r~
t,
SUBMITTED TO THE ELE<:;TORS OF ARizONA, OCTOBER 3, 1933 35
the remaining net income shall be appropriated to Arizona on the
basis of the ratio obtained by taking the arithmetical average of
the following three Tatios :
1. The ratIO of the tangible property, real, personal, and mixed,
owned and used by the taxpayer in Arizona in connection with his
trade or business during the income year, to the total of such prop­erty
of the taxpayer owned and used by him in connection with his
trade or business everywhere. Cash on hand or in the bank, shares
of stock, notes, bonds, accounts receivable, or other evidence of in­debtedness,
special privileges, franchises, good will, or property, the
income of which is not taxable or is separately allocated, shall not
be considered tangible property nor included in the apportionment.
2. In the case of persons engaged in manufacturing or in any
form of collecting, assembling, or processing goods and materials
within the state, the ratio of the total cost thereof within the state
to the total cost thereof everywhere. "Cost of manufacturing, collect­ing,
assembling, or processing within the state and everywhere,"
shall be so interpreted as to conform as nearly as may be to the best
accounting practice in the trade or business. Unless, in the opin­ion
of the commission the peculiar circumstances in any case justi­fies
a different treatment, this term shall be interpreted to include
as elements of cost within the state, the total cost of all goods, ma­terials
and supplies used in manufacturing, assembling, or process­ing
within the state regardless of where purchased; the total
wages and salaries paid or incurred during the income year in the
state in such manufacturing, assembling, or processing, and the
total overhead or manufacturing burden properly assignable, ac­cording
to good accounting practice to such manUfacturing, as­sesembling,
or processing within the state.
3.· In the case of trading, mercantile, or manufacturing con­cerns,
the ratio of the total sales made through or by offices, agen­cies,
or branches located in Arizona during the income year, to the
total net sales made everywhere during said income year.
(b) If it shall be shown to the satisfaction of the commission
that the use of anyone of such ratios produces an unreasonable or
inequitable result, for the reason that the taxpayer, in producing
the income taxed, does not to any appreciable extent employ the
factors used, such ratio may, with the approval of the commission,
be omitted in obtaining the final average ratio which is to be ap­plied
to the remaining net income. If the income of any such per­SOn
properly assignable to the state cannot be ascertained with
reasonable certainty by either of the foregoing methods, then the
36 PAMPHLET CONTAINING'AMENDMENTS AND MEASURES. TO BE
same shall be apportioned and allocated under such rules and reg­ulations
as the commission may.prescribe.
(c) "Sales," as used in this section, shall include exchange, and
"manufacturing" shall include mining and all processes of fabricat­ing
or curing raw materials.
(d) A foreign corporation whose principal business is carried
on or transacted in Arizona shall be deemed a resident of the state
for income tax purposes and its income shall be determined and as­sessed
as if it were incorporated under the laws of Arizona, not­withstanding
its domicile is elsewhere.
Sec. 25. INCOME OF PARTNERSHIPS. (a) Individuals car­rying
on business in partnership (excepting investment companies,
as defined by section 1887, Revised Code of 1928) shall be liable for
income tax only in their individual capacity. In computing the
income of each partner there shall be included his distributive share,
whether distributed or not, of the net income of the partnership
for the income year. Partners shall be required to file individual
returns on the basis of a fiscal or calendar year which coincides with
that upon which the partnership return is filed.
(I:J) The net income of the partnership shall be computed in
the same manner and on the same basis as provided for persons
other than corporations.
Sec. 26. DISTRIBUTION OF DIVIDENDS; ACCUMULATED
PROFITS; DISTRIBUTIONS IN, LIQUIDATION; PROPERTY
DIVIDENDS. (a) Distribution of dividends derived from stockS,
whether paid in cash or property, shall be presumed to be made out
of profits, and from the most recently accumulated profits.
(b Profits accumulated, or increase in value of property ac­crued
before January 1, 1933, may be distributed exempt from tax,
after profits accumulated SUbsequent to January 1, 1933, have been
distributed, but any such tax-free distribution shall be applied
against and reduce the cost or other income tax basis provided in
section 27, subsection (a). If taX-free distributions exceed the cost
or other income tax basis, the excess shall be included in the gross
income of the year in which received.
(c) Distributions in liquidation of a corporation shall be treat­ed
as payment in exchange for the stock, and the gain or loss to
the distributee resulting therefrom shall be determined under the
provisions of this subsection and section 27, subsection (a). Dis­tributions
in liquidation shall not be taxed as a gain until the dis-
•
777
SUBMITTED TO THE ELECTORS OF ARIZONA, OCTOBER 3, 1933 37
tributee shall have received amoqnts in liquidation in excess of the
cost or other income tax basis, and any excess shall be taxed as gain
in the year in which received. Losses upon liquidation shall be
recognized only in the year in which the corporation makes its final
distribution. For the purpose of this subsection a corporation shall
be considered to be liquidating when it begins to dispose of the as­sets
with which it carried on the business for which it was organ­ized
and begins to distribute the proceeds from the disposition of
such assets, or the assets themselves, whether or not such dispo­sition
and distribution is made pursuant to resolution for dissolu­tion;
provided, that any distribution of current earnings of a cor­poration
shall not be considered to be a distribution in liqUidation
unless the corporation making such distribution has ceased or is
about to cease-carrying on the business for which it was organized.
(dl Dividends paid in property other than cash shall be ap­praised
at the value of such property on the date of distribution.
(e) A dividend paid by a corporation in its own capital stock
shall not be subject to tax as a dividend at the time of its receipt
by a stockholder; but the sale of such stock and of the stock with
respect to which it was issued may result in a gain or loss for tax
purposes, to be determined as provided in this subsection and in
section 27, subsection (a). For such determination the cost or other
basis of the old and of the new shares shall be such proportions of
the original cost or other basis of the old stock as is properly al­locable
to each, according to regulation prescribed by the commis­sIon.
If before or after the distribution of a stock dividend the
corporation cancels or redeems its stock in such manner as to make
the .transaction in whole or in part essentially equivalent to a tax­able
dividend, such distribution, to the extent that it represents
profits accumulated subsequent to January 1, 1933, shall be treated
as a taxable l!1ividend.
(f) When a dividend, not a distribution in liquidation, is dis­tributed
in property other than cash, the profit or loss arising there­from
shall be that of the corporation, and measured by the differ­ence
between the value of such property at the time of distribution
and the income tax cost thereof to the corporation.
(g) Where the transfer of a reserve or other account or a por­tion
thereof is in effect a transfer to surplus, so much of such trans­fer
as was accumulated through deductions from the gross or tax­able
income of years open to audit shall be inclUded in the taxable
Income of such years, and so much thereof as was accumulated
through deductions from the gross or taxable income of years not
33 PAMPHLET CONTAINING AMENDMENTS AND MEASURES, TO BE
open to audit shall be included.in the taxable income of the year
in which the transfer was effected.
Sec. 27. GAIN OR LOSS IN SALE OF CAPITAL ASSETS;
R.EPLACEMENT OF PROPERTY DESTROYED. (a) For the pur­pose
of ascertaining gain or loss resulting from the disposition of
real estate or other capital assets, acquired prior to January 1, 1933,
the value thereof as of January 1, 1930, shall be the basis. For com­puting
profit or loss on the disposition of property acquired by gift
subsequent to January 1, 1933, the cost to the last preceding owner
who did not acquire it by gift shall be the basis, or in case such cost
cannot be ascertained, if the property was acquired by such pre­ceding
owner after January 1, 1933, then _the basis shall be the
value thereof at or about January 1, 1930, to be determined from
the best information obtainable. For computing profit or loss on
the disposition of property acquired by descent or by will after Jan­uary
1, 1933, the appraised value thereof, in the administration of
the estate of the deceased owner, as of the date of his death, Shall
be the basis. In every case the basis shall be diminished by the sum
of all deductions allowed after acquisition or after the basis date,
for eXhaustion, wear and tear and depletion; by the amounts of
income deferred by the taxpayer and used to reduce property, and
by anticipated losses on the 'property which have been deducted
from taxable income.
(b) If property, exclusive of inventories (as raw material,
goods in process and finished goods), as a result of its destruction
in whole or in part by fire or other casualty, is involuntarily con­verted
into money which is in good faith, within one year, under
regulations prescribed by the commission, expended in the replace­ment
of the property destroyed or in the acquisition of other prop­erty
similar or related in service or use to the property destroyed,
or in the establishment of a replacement fund which, within two
years from date of the casualty is actually expended to replace the
property destroyed or in the acquisition of other property similar
or related in service or use to the property destroyed, no gain shall
be recognized, and in the case of gain the property so replaced or
acquired shall be deemed to take the place of the property so de­stroyed.
If any part of the money is not so expended the gain, if
any, shall be recognized in an amount not in excess of the money
which is not so expended. Replacement of property by an insur­ance
company shall be deemed to be an expenditure by the tax­payer
of insurance moneys received by him.
Sec. 28. GAIN OR LOSS IN TRANSFERS PURSUANT TO
REORGANIZATION OF CORPORATIONS. (a) "Reorganization"
shall mean a merger or consolidation, 'by which one corporation
--\t
SUBMITTED TO THE ELECTORS OF ARIZONA,. OCTOBER 3,1933 779
39
shall acquire not less than a majority of the voting stock and not
less than a majority of the total number of shares of all other
classes of stock of another corporation, or substantially all of
its properties; or a transfer by one corporation of all or a por­tion
of its assets to another corporation, immediately following
which the transferor or its stockholders are in control of the cor­poration
to which the assets are so transferred; or a recapitulation.
or change in the form of capitalization; or a mere change in iden­tity,
form or place of organization, however effected.
(bl "Party to a reorganization" shall mean a corporation re­sulting
from a reorganization, and in the case of an acquisition by
one corporation of not less than a majority of the voting stock
and not less than a majority of the total number of shares of all
other classes of stock of another corporation, shall include both
corporations.
(cl "Control," as used in this section, shall mean the owner­ship
of at least eighty per cent of the voting stock and at least
eighty per cent of the total number of shares of all other classes
of stock of the corporation.
(dl No gain or loss shall be recognized if in pursuance of re­organization
stock, securities or property of a corporation party
thereto are exchanged solely for stock or securities of such or an­other
corporation party to such reorganization; provided, that where
property is exchanged solely for stock and the stock is thereafter
sold, the difference between the cost of the property so exchanged.
or its fair market value as of January 1, 1933, and the amount re­ceived
for the stock so received in such exchange, shall constitute
profit or loss under the provisions of subsections (dl and (e).
(el No gain or loss shall be recognized when property is trans­ferred
to a corporation solely in exchange for its stock, if imme­diately
after the exchange the corporation is in the control of the
person or persons exchanging such proPEirty; provided, that if the
exchange is by two or more persons this provision Shall apply only
if the amount of the stock received by each is SUbstantially in pro­portion
to his interest in the property prior to the exchange.
(f) No gain to the distributee shall be recognized when, in pur­suance
of reorganization, stock or securities of a corporation party
thereto are distributed to a stockholder in such or another cor­poration
party to the reorganization, without the surrender by the
distributee of stock or securities in such corporation.
(g) The distribution, in pursuance of reorganization, of the
780
40 PAMPHLET CONTAINING AMENDMENTS AND MEASURES, TO BE
stock or securities of a corporation party thereto shall not be con­sidered
a distribution of earnings or profits for the purpose of de­termining
the taxability of subsequent distributions.
(h) When property (other than stock or securities of a Cor­poration
party to a reorganization) was acquired in pursuance of
reorganization, and for inco~ tax purposes the transaction was
treated as provided in subsection (d), and immediately after the
transfer control of the property remained in the same persons or
any of them, the basis for determining gain or loss, depletion or
depreciation, shall be the same as if the property remained in the
hands of the transferor.
(i) When property (other than stock or securities of a cor­poration
party to a reorganization) was acquired by a corporation
by the issuance of its stock or securities, and for income tax pur­poses
the transaction was treated as provided in subsection (e), the
basis shall be the same as if the property remained in the hands
of the transferor.
(j) When property consists of stock or securities distributed
in pursuance of reorganization, and for income tax purposes the
transaction was treated as provided in subsection (f), the basis shall
apply to the stock in respect of which the distribution was made and
be apportioned as in the case of stock dividends.
Sec. 29. REPORTS OF EXECUTORS AND ADMINISTRA-TORS.
(a) In all cases where a deceased person, if living, would
have been required to file a report of income, the executor or ad­ministrator
of the estate of such decedent shall, within the time
that it should have been filed had the decedent survived, file such
report, which shall show;
1. All income received by decedent during that portion of the
year covered by the report preceding the demise of the decedent.
2. All income received by him from the estate of the deceased
during the year covered by the report, if such receipts would have
been assessable had the decedent survived.
3. All income received by him from the estate of the deceased
covered by the report, accrued at the date of death, but not re­ported
by the decedent on the accrual basis, if such receipts would
have been assessable had the decedent survived.
4. If the decedent was a married person at the date of death,
the income of the widow, if living, and of all children under eight-
1....•. ::~f~,
-----------====
SUBMITTED TO THE ELECTORS OF ARIZONA, OCTOBER 3. 1933 41
een, together with the income of any person actually supported by
and dependent upon the estate.
(bl Income arising from a transaction which was being re­ported
by the decedent while living, on a deferred basis, shall be
reported by the executor or administrator in the same manner. If
all of such deferred -income has not been reported and accounted for
before the executor or administrator is discharged, he shall in his
last report of income, return as income the then value of the de­ferred
income unreported.
(cl Th executor or administrator shall be allowed the same
personal exemptions that the decedent, had he survived, would have
been entitled to, except that no personal exemption shall be allowed,
under section 14, subsections (al and (b), but for the year of death.
(dl If the decedent was a single person at the time of death,
and was actually supporting children under the age of eighteen
years or any other person or persons dependent upon him the per­sonal
exemption deductible under section 14, subsections (c) and
(d) shall be allowed until such children reach the age of eighteen
years or until such other person or persons shall cease to be de­pendent.
(e) If the decedent was a married person at the date of death
and his wilow is the head of a family, the same personal exemption
shall be allowed as is allowed to the head of a family under section
14, subsections (b), (cl or (d), as the case may be.
(f) The executor or administrator shall include in his report
of income the income of the wife of the deceased, if living, and of
all children under eighteen, together with the income of any per­son
actually supported by and dependent upon. the estate.
Sec. 30. REPORTS OF GUARDIANS. A guardian shall
make a report of income, which shall show the income from all
sources received by or for his ward, and shall pay the tax. The net
income of a guardian shall be ascertained in the same manner as
the income of other persons, and shall be subject to the same de­ductions
for personal exemptions as the ward would have been en­titled
to had he made the return; provided, that if any ward is
under eighteen and the child of a person required to file a report
of income, the personal exemption provided in section 14, subsec­tion
(c) shall be allowed to the guardian. The taxable income of
a ward under eighteen shall be added to the taxable income of the
parent or head of afarnily as prOVided in section 14, subsection (e),
and the tax computed on the combined income of such ward and
782
42 PAMPHLET CONTAINING AMENDMENTS AND MEASURES, TO BE
parent or head of a family. The tax on the combined income shall
be credited with any tax the guardian may have paid or is liable
for on the income of the ward, and the balance of the tax on the
combined income shall be paid as provided in section 14, subsection
(e). If the tax so credited shall not be paid by the guardian when
due, the parent or head of a family shall pay the same and shall
have a personal right of action for reimbursement therefor against
the guardian and a lien upon the property from which the income
is derived.
Sec. 31. REPORTS OF TRUSTEES. (a) The trustee of a
. trust estate created by will, contract, declaration of trust, or impli­cation
of law, shall make a report of income received by him as
SUCh, showing the total taxable income received during the year,
the names and addresses of distributees and the amounts severally
distributable to them, whether distributed or not, and also the
amounts to be accumulated by them for unknown, unborn, or un­disclosed
beneficiaries, or for other reasons. The net income re­ceived
by a trustee shall be ascertained in the same manner as the
net income of persons other than corporations, except that the per­sonal
exemptions under section 14, subsections (a), (b), (c) and
(d), shall not be allowed. A distributee who receives or is entitled
to receive any part of such net income shall report the same, to­gether
with other income as provided by this act. A non-resident
distributee shall be assessed on such income as the income of non­residents
is assessed. No personal exemption shall be allowed a
distributee unless he makes claim therefor in his report of income.
(b) All nondistributable income, or contingently distributable
income not distributed, shall be assessed to the trustee in the same
manner as income of persons other than corporations, except that
the personal exemption under section 14 shall not be allowed.
Sec. 32. INCOME TAXES LIEN ON TRUST ESTATE. In­come
taxes levied against the income of beQeficiaries, as provided
in sections 29, 30 and 31, shall be a lien on that portion of the trust
estate or interest therein from which the income taxed is derived,
and if not paid by the distributee shall be paid by the fiduciary
before the same becomes delinquent. Every person who as a fidu­ciary
under the provisions of this act pays an income tax shall have
all the rights of reimbursement provided by law for the allowance
of expenses of executors and administrators, guardians, or trustees.
Sec. 33. PAYMENT OF TAX BEFORE DISCHARGE OF FI­DUCIARY.
(a) No fiduciary applying for discharge of his trust
shall be so discharged until he has made a report of all income
received in his representative capacity to the date of such applica-
;
1"·'·¥··(r.)"·,.u?
SUBMITTED TO THE ELECTORS OF ARIZONA, OCTOBER 3. 1933 43
tion, and paid the tax found to be due, as in this section provided.
1. Upon making application for dicharge, any such fiduciary
shall file with the commission a report of income received after the
close of the last preceding income year, and a report of income re­ceived
during each of the years open to audit, if such reports have
not theretofore been filed.
2. The commission shall determine the amount of taxes to be­come
due and certify the same to the court, whereupon the court
shall enter an order directing the fiduciary to pay into the treas­ury
the amount of tax, if any, found due.
3. The receipt of the treasurer shall be evidence of the pay­ment
of the tax and shall be filed with the court before a final dis­tribution
of the estate or trust shall be ordered and the fiduciary
discharged.
(b) The treasurer shall enter the amount in a ledger account
entitled "Advance Income Taxes."
Sec. 34. OFFICE AUDIT; CORRECTION. (a) As soon as
practicable the commission shall audit each report of income filed,
and compute the tax, and the amount so computed shall be the tax.
If it shall be found that any person has been over or underassessed,
or that no assessment has been made when one should have been,
the proper correction or assessment- shall be made. If the tax found
due shall be greater than the amount theretofore paid, the defi­ciency
shall be paid to the commission within twenty days after no­tice
to and demand upon the taxpayer.
(b) If the report was made in good faith and the deficiency
of the tax is not due to any fault of the taxpayer, there shall be no
penalty or additional tax added because of such deficiency, but in­terest
shall be added to the amount of the same from the date the
tax wl1s originally due until paid, at the rate of six per cent per
annum.
(c) If the tax found due shall be less than the amount there­tofore
paid, the commission shall certify such overpayment to the
aUditor, for refund to the taxpr"yer.
(d) Any correction or assessment made as a result of such of­fice
audit shall be presumed to be the result of an audit of the re­port
of income only, and shall not be deemed a verification of any
item in the report nor preclude the commission from making field
J~84
44 PAMPHLET CONTAINING AMENDMENTS AND MEASURES, TO BE
aUdits of the books and records of the taxpayer and from making
further correction or assessment.
Sec. 35. FIELD INVESTIGATION. Whenever it is deemedi
advisable to verify a report of income or otherwise ascertain the:)j".
taxable income of any person the commission may direct such veri-.
fication to be made, and for such purpose shall have the powers
prescribed by section 5. Upon such information as may be gained,
the commission shall determine the true amount of income received
during the year or years under investigation. If it shall appear up-on
investigation that a person has been over or underassessed, or
that no assessment has been made when one should have been
made, the commission shall make a correct assessment.
Sec. 36. LIMITATION ON CORRECTIONS. Corrections or
additional assessments of income may be made at any time within
five years after the close of the period covered by a report of in­come;
provided, that if in any year no return is filed, income of
any such years may be assessed when discovered.
Sec. 37. INTEREST ON BACK TAXES; INTEREST ON
OVERPAYMENTS. (a) In assessing back taxes interest shall be
added to such taxes at the rate of six per cent per annum from the
date they would have become delinquent if unpaid, had they been
assessed when they first became assessable, to the date on which
such back taxes when subsequently assessed will become delinquent,
if unpaid.
(b) In certifying refunds of taxes which have been overpaid,
interest shall be added at the rate of six per cent per annum from
the date of the payment of such taxes until the date on which such
overpayment is certified to the auditor.
Sec. 38. NOTICE OF CORRECTION OR OF ASSESSMENT.
(a) When a correction or assessment has been made,as provided
in sections 34 and 35, the taxpayer shall be .given notice thereof, in
writing, by registered mail, or served as a superior court summons.
Service by regular mail shall be deemed sufficient if receipt thereof
is admitted, or there is other satisfactory evidence of receipt.
(b) Within fifteen days after such notice, the taxpayer may
present evidence, orally or in writing, under oath, and the contro­verted
correction or assessment may be modified if, in the judgment
of the commission, such action is justified by the facts disclosed.
(c) If within twenty days after such notice, the taxpayer does
not request a hearing before the commission. the correction or as-
SUBMITTED TO THE ELECTORS OF ARIZONA, OCTOBER 3, 1933 45
sessment as proposed, or as modified in accordance with subsection
Cb), shall be fina~ and conclusive, and the tax shall become imme­diately
delinquent.
Sec. 39. HEARING BY COMMISSION. Any person aggrieved
by the correction or assessment of his income shall be entitled to a
hearing before the commission, if within twenty days after the
notice prescribed by section 38 he shall in writing request the same
and explain in detail his objections to such correction or assess­ment.
Upon a request for hearing the commission shall fix the
date and place of hearing, and shall hear the taxpayer and render
its decision.
Sec. 40. COURT REVIEW. (a) No person against whom
an income assessment has been made, corrected or confirmed shall
be allowed in any action or proceeding, either as plaintiff or de­fendant,
to contest such assessment in court unless such person
shall first have made in good faith written objection to such assess­ment,
to the commission, and full disclosure under oath of all as­sessable
income, nor unless he shall have availed himself of the
remedy provided by sections 38 and 39.
Cb) An appeal from a decision of the commISSIOn shall be
taken to the superior court of the county in which the taxpayer re­sides,
within twenty days after written notice to the taxpayer of
such decision has been given by registered mail, by serving a notice
of appeal and a copy thereof on tqe commission. The notice shall
name the order or decision from which appeal is taken, specify the
objections to the correction, assessment, order or decision to be
considered and recite the assignments of error, together with a state­ment
of the facts upon which the appellant relies and the proposi­tions
of law involved.
(c) Within twenty days after the service of such notice, the
commission shall return to the court the orIginal or a certified or
photostatic copy of all documents, papers; evidence, statements and
exhibts on file in the matter and of all testimony taken therein.
(d) Within twenty days after service of notice of appeal, the
appellant shall serve upon the commission a brief in support of
his objections to such assessment, and shall at the same time file
a copy thereof with the clerk of the court wherein said appeal is
pending.
(e) Within thirty days after service of appellant's brief the
commission shall serve upon the appellant or his counsel an answer
46 PAMPHLET CONTAINING AMENDMENTS AND MEASURES. TO BE
to the objections raised on appeal, and a brief in support of such
answer and of the assessment; whereupon the appeal shall be re­garded
as at issue.
(f) Subject to the provisions of law for change of venue or
the call1ng in of another judge, said appeal may thereupon be
brought on for hearing by either party, on ten days' notice to the
other, upon the record made before the commission and not other­wise.
The attorney general shall appear for the commission.
(g) In all actions to contest the validity of income assessments
the proceedings of the commission shall be presumed to be legaL
and its determination shall not be impaired, vitiated or set aside
upon any grounds not affecting the legal groundwork of the tax.
If the court, disregarding any irregularity, informality or omission
not affecting the legal groundwork of the tax, shall find that the
assessment complained of was neither in whole nor in part illegal,
it shall enter an order confirming the assessment and directing
judgment in accordance with the terms of the order. If it shall
find that the assessment is in whole or in part illegal, it shall direct
the commission to make such corrections as it may deem necessary.
Upon eight days' written notice to the adverse party the court shall
enter jUdgment. It shall be the duty of the clerk of the eourt to
promptly transmit two copies of the decision to the commission.
(h) Within twenty days after the entry of judgment either
party may appeal to the supreme court 'in the manner provided for
appeals from the judgment of a superior court, and such appeal
shall be placed on the calendar of the supreme court and brought
to a hearing in the same manner as other state cases. If no appeal
be taken the clerk of the court shall certify such fact to the com­mission
and return the record to the commission.
Sec.41. STAY OF COLLECTION PENDING APPEAL. When
any person shall have served notice of appeal to the superior court,
as provided in this act, all collection proceedings shall be stayed
until final determination thereof;. provided, that such appeal shall
not operate to stay the delinquent penalty and interest on unpaid
amounts.
Sec. 42. PAYMENT OF TAXES ON APPEAL. (a) Any per­son
who shall contest an assessment in court shall state in his no­tice
of appeal what portion, if any, of the tax is admitted to be le­gally
assessable and correct, and shall pay to the commission the
tax so admitted. Such payment shall constitute an admission of
the legality of the tax paid, and the tax so paid cannot be recovered
in any action or proceeding.
ft,
SUBMITTED TO THE ELECTORS OF ARIZONA, OCTOBER 3, 1933 47
(b) Any assessment, or part thereof, appealed to the superior
court, which the court shall finally order to be paid, shall be deemed
to be delinquent from the date on which it would have become de­linquent
had no appeal been taken, and shall be subject to the pen­alty
and interest prescribed for delinquent taxes.
Sec. 43. FINAL CERTIFICATION; COLLECTION OR RE­FUND.
When any correction or assessment, action or proceeding,
. affecting the income assessment of any taxpayer shall become final,
the commission shall collect the same, if any part thereof is de­linquent,
as provided for the collection of delinquent taxes. If the
tax is overpaid the commission shall certify to the auditor, for re­fund,
the amount of such overpayment, and the aUditor shall draw
his warrant in favor of the taxpayer for the amount.
Sec. 44. CLAIM FOR REFUND. (a)) An action or proceed­ing
for the allowance of credits or for the refund or recovery of in­come
taxes alleged to have been erroneously collected or paid, shaH
be brought as provided in this section and not otherwise.
(b) No refund shall be made nor credit allowed for taxes paid
for years not open to audit.
(c) No refund shall be made on any item of income or de­duction
assessed as a result of an office aUdit, nor for any year
the income of which was assessed as, a result of a field audit, which
item or assessment shall have become final.
(d) Claims' for refund or credit shall be filed with the com­mission
and shall set forth specifically and in detail the basis of
and reason for any such claim. Upon the filing of a claim it shall
be considered and acted upon as provided for the consideration of
additional assessments. If any portion of a claim is disallowed the
person filing the same shall have the right of hearing and appeal
provided in section 39.
(e) If the commission Shall fail or neglect to act on any
claim for refund or credit within one year after the receipt thereof,
such neglect shall have the effect of allowing such claim and the
commission shall certify such refund or credit.
Sec. 45. COLLECTION OF DELINQUENT TAXES. (a) If
any tax imposed by this act or any portion thereof be not paid with­in
thirty days after the same becomes delinquent, the commission
shall issue a warrant under the hand of its chairman and its of­ficial
seal directed to the sheriff of any county commanding him
48 PAMPHLET CONTAINING AMENDMENTS AND MEASURES, TO BE
to levy upon and sell the real and personal property of the tax­payer
found within his county, for the payment of the amount of
such tax, with the added penalties, interest and the costs of execut­ing
the warrant, and to return such warrant to the commission and
pay to it the money collected by virtue thereof by a time to be
therein specified, not less than sixty days from the date of the
warrant. The sheriff shall, within five days after the receipt of
the warrant, file with the clerk of the court a copy thereof, and the
clerk shall thereupon enter in the judgment docket, in the column
for judgment debtors, the name of the taxpayer mentioned in the
warrant, and in appropriate columns the amount of the tax or
portion thereof and penalties and interest for which the warrant
is issued and the date when such copy is filed, and thereupon the
amount of such warrant so docketed shall become a lien upon the
title to any interest in real or personal property of the taxpayer
against whom it is issued in the same manner as a judgment dUly
docketed in the office of the clerk. The said sheriff shall thereup­on
proceed upon the same in all respects, with like effect and in
the same manner prescribed by law in respect to execution issued
against property upon judgment of a court of record, and shall be
entitled to the same fees for his services in executing the warrant,
to be collected in the same manner. In its discretion the commis­sion
may issue a warrant of like terms, force and effect, directed to
any agent authorized to collect income taxes, and in the execution
thereof such agent shall have all the powers conferred by law up­on
sheriffs, but shall be entitled to no fee or compensation in ex­cess
of actual expenses paid in the performance of such duty. If a
warrant be returned not satisfied in full, the commission shall have
the same remedies to enforce the claim for taxes against the tax­payer
as if the people of the state had recovered judgment against
the taxpayer for the amount of the tax.
(b) Every tax imposed by this act, and all increases, interest
and penalties thereon shall become, from the time the same is due
and payable, a personal debt from the person liable to the state of
Arizona.
(c) An action may be brought at any time by the attorney
general, at the instance of the commission, in the name of the
state, to recover the amount of any taxes, penalties and interest
due under this act.
Sec. 46. FAILURE TO FILE REPORTS; PENALTIES. (a)
Any person required to make a report of income, who shall fail to
do so within the time and in the manner prescribed by this act, or
shall make a report which does not disclose his entire taxable in-
SUBMITTED TO THE ELECTORS OF ARIZONA OCTOBER 3. 1953
come,shall be assessed, in an amount not less than one hundred
dollars, according to the best judgment of the commission. If, after
notice as provided in section 38, no request is made for a hearing,
the assessment shall be final arid conclusive, and the person as­$
essed shall thereafter be forever barred from questioning the cor­rectness
of the same in any action or proceeding.
(b) If any person required to make a report of income fails to
file the same within the time and in the manner prescribed by this
act, the commission shall add to the tax of such person ten dollars
in the case of corporations and five dollars in the case of persons
other than corporations. If no tax is assessed against such per­Son
the amount of this fee shall be collected as income taxes are
collected,and no person shall be allowed in any action or pro­ceeding
to contest the imposition of such fee.
(c) Any person required to make a report of income, who
fails to do so, or makes an incorrect report, with intent in either
case to defeat or evade the income tax, shall be assessed at twice
the normal rate. Such increased assessment shall be in addition
to all other penalties. The statute of limitations shall not begin to
run as against any such taxpayer until the assessment Shall have
been made as herein provided.
(dl Any person required to do so, who fails to file a report as
provided by section 16, SUbsection (d), (e) and (f), shall be subject
to a fine or penalty of not less than, twenty-five nor more than
five hundred dollars, to be assessed and collected as income taxes.
(e) Any person other than a corporation, or any officer of a
corporation required by law to make, render, sign, or verify a re­port
of income or any statement required by this act, who fails or
refuses to make such report or statement at the time or times pro­vided,
or who makes a false or fraudulent report or statement with
intent to defeat or evade the income tax, or to obstruct the enforce­ment
of any provision of this act, shall upon conviction, be fined
not less than one hundred nor more than five thousand dollars, or
be imprisoned not to exceed one year, or both, at the discretion of
the court, and be required to pay the cost of prosecution.
Sec. 47. SECRECY REQUIRED; PENALTY; RECIPROCITY.
(a) Except in accordance with the order of a court having juris­diction
or as otherwise provided by this section, it shall be unlaw­ful
for any officer, deputy, agent, clerk or employee charged with
any duty connected with or relating to the assessment or collection
of the income tax, to divulge or make known in any manner the
~JO
50 PAMPHLET CONTAINING AMENDMENTS AND MEASURES, TO BE
amount of income or any particulars set forth or disclosed in any
report or return required under this act.
(b) Nothing herein shall be construed to prohibit the publica­tion
of statistics, so classified as to prevent the identification of
particular reports or returns, or the inspection by the attorney gen­eral
or other legal representative of the state, of the report or re­turn
of any taxpayer who shall bring action to review or set aside the
tax based thereon, or against whom an action or proceeding has
been instituted to recover any tax or any penalty imposed by this
act.
(c) The tax commission may permit the United states com­missioner
of internal revenue or the proper officer of any state
imposing an income tax upon the incomes of individuals, or the au­thorized
representative of either such officers, to inspect the re­port
of income of any taxpayer, or it may 'give any such officer an
abstract of the report of income, or supply him with information
concerning any item contained in any report of income or disclosed
by any investigation of the income or report of income, of any tax­payer;
provided, that such permission shall be granted or such in­formation
furnished dnly if the statutes of the United States or of
such state, as the case may be, grant substantially similar privileges
to the officers of this state charged with the administration of this
act.
(d) Any violation of this section shall be punished by a fine
not exceeding one thousand dollars or by imprisonment not exceed­ing
one year, or both, at the discretion of the court, and if the of­fender
be an officer or employee of the state or of any county
thereof, he shall be dismissed from office and be incapable of hold­ing
any public office in this state for a period of five years there­after.
Sec. 48. PRESERVATION OF REPORTS. Reports and re­turns
reecived under the provisions of this act shall be preserved
for five years, and thereafter until the commission orders them to
be destroyed.
Sec. 49. DISPOSITION OF INCOME TAX. (a) The tax
commission shall remit all revenues collected under this article di­rect
to the state treasurer within three days following such col­lection
or receipt by the commission, and any receipt or acknowl­edgment
delivered by the tax commission to the taxpayer filing
report and making such payment shall serve and be reco~nized
only as a receipt of the amount so tendered and accepted, subject
p:a
SUBMITTED TO THE ELECTORS OF ARIZONA, OCTOBER 3, 1933
.-.,~~
to proper clearance and collection if in the form of a check, draft,
or other instrument of exchange except lawful money of the united
States, but shall not be evidence or be construed as an acknowl­edgment
by said commission of· the sufficiency of such amount or
as to the correctness of the report so filed or of any matter con­tained
therein.
(b) With each remittance of such funds to the state treasurer
the commission shall transmit to him a full statement of all
amounts paid under protest. The state treasurer shall set up a
fund to be designated "Income tax suspense fund," into which he
shall pay and carryall amounts so paid under protest until such
time as their status is finally determined by appeal to the commis­sion
or to the courts or for a period of three months if no such ap­peal
be prosecuted by the taxpayer. The tax commission shall keep
the state treasurer fully advised with respect to the status of all
such payments.
(c) Of all other income tax receipts or collections so trans­mitted
to him, the state treasurer shall pay into said "Income tax
suspense fund" ten per centum thereof until the total amount of
said fund, less the amount held therein as paid under protest, shall
amount to twenty thousand dollars, and at all times when such
amount equals twenty thousand dollars neither said ten per cen­Lam
or any part thereof shall be paid into said fund. From said
"Income tax suspense fund" the state treasurer shall disburse
and pay all refunds to taxpayers upon order and certificate of the
state tax commission or by decree of a court of competent juris­diction.
Sec. 50. INVALID PROVISIONS. If any part or prOVISIon
of this act shall be adjudged to be invalid, such judgment shall not
invalidate the remainder of the act, but shall be confined in its
operation to the particular clause, sentence or paragraph directly
involved in the controversy out of which such interpretation may
arise.
The following is the form and number in which the question
will be printed on the Official Ballot:
REFERENDUM ORDERED BY PETITION OF THE PEOPLE
"THE INCOME TAX ACT OF 1933"
1~92
52 PAMPHLET CONTAINING AMENDMENTS AND MEASURES, TO BE
If you favor the above law, vote YES; if opposed, vote NO.
D
302 Yes.
303 No.
AN ACT RELATING TO TAXATION, AND TO PROVIDE FOR
A GRADUATED TAX ON NET I~COME.
SUBMITTED TO'THE ELECTORS OF ARIZONA, OCTOBER 3. 1933
To be submitted to the qualified electors of the State of Arizona for
their approval or rejection at the
GENERAL ELECTION
to be held
ON OCTOBER 3rd, 1933.
Referendum ordered by petition of the people and filed in the
office of the Secretary of State,June 12th, 1933, and printed in pur­suance
of Paragraph 1746, Chapter 34, Article 1, Revised Code of
Arizona, 1928,
JAMES H. KERBY, Secretary of State.
(On Official Ballot Nos. 304-305)
CHAPTER 84
<HOUSE BILL NO. 46)
ELEVENTH LEGISLATURE, Regular Session.
AN ACT
RELATING TO THE BASIC SCIENCES; DEFINING THE SAME
AND CREATING A BOARD OF EXAMINERS THEREIN; PROVID­ING
FOR THE EXAMINATION AND REGISTRATION OF PRAC­TITIONERS
OF THE HEALING ARTS; AND PROVIDING PENAL­TIES
FOR THE VIOLATION HEREOF.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF
ARIZONA:
Section 1. BASIC SCIENCES DEFINED; PRACTICING HEAL-'
ING AND PRACTICE OF HEALING DEFINED. Wherever the term
"Basic Sciences" is used in this act and not otherwise specifically
defined, the same Shall be understood and construed to mean and
include all matter pertaining to gross anatomy, physiology, pathol­ogy,
chemistry, bacteriology and hygiene. Wherever the term
"Practicing Healing" or "Practice of Healing" is used in this act,
unless otherwise specifically defined, the same shall be understood
and construed to mean and include any person not hereinafter ex-
54 PAMPHLET CONTAINING AMENDMENTS AND MEASURES. TO BE
cepted from the provisions of this act who shall in any manner, for
any fee, gift, compensation or reward, or in expectation thereof, en­gage
in, or hold himself out to the public as being engaged in the
pracitce of medicine or surgery, the practice of osteopathy, the
practice of chiropractic, analysis, treatment, correction or cure of
any disease, injury, defect, deformity, infirmity, ailment or afflic­tion
of human health or disease, or who shall for any fee, gift, com­pensation
or reward, or in anticipation thereof, suggest, recommend,
or prescribe any medicine, diet or any form of treatment, correction
or cure therefor; also any person or persons not hereinafter excepted
from the prOVisions of this act who, individually or collectively,
maintain an office for the reception, examination, diagnosis or
treatment of any person for any disease, injury, defect, deformity
or infirmity of body or mind, or who attaches the title of doctor,
physician, surgeon, specialist, M.D., M.B., D.C., D.O., N.D., or any oth­er
word, abbreviation or title to his name, indicating or designed to
indicate that he is in the practice of healing.
Sec. 2. BOARD OF EXAMINERS IN BASIC SCIENCES. There
is hereby created and established a board to consist of five mem­bers,
citizens of the state of Arizona, to be known and designated
as the state board of examiners in the basic sciences.
Sec. 3. SAME; MEMBERS, APPOINTMENT, TERMS OF OF­FICE;
VACANCIES; OATH OF OFFICE. The board of regents of
the university of Arizona shall appoint from the professors, asso­ciate
professors or assistant professors of the faculty of the uni­versity,
five persons to serve as m~mbers of the board of examiners
in the basic sciences. The first appointments shall be made as soon
as may be practicable after this act shall take effeet. The terms of
office of the members first appointed shall begin when they are
appointed and qualify and shall continue thereafter for the follow­ing
periods: Two members until January 1st, 1934; two members
until January 1st, 1936, and one member until January 1st, 1938.
Upon the expiration of such terms and of all terms thereafter, the
board of regents shall appoint, for a term of six years, a Slilccessor
to the member whose term expires. Vacancies in said board shall
be filled, for the balance I"f the unexpired term, by appointment by
the board of regents withm sixty days after such vacancies occur,
and each member shall .serve until his successor qualifies; each
member of the board before entering upon the dicharge of his du­ties
shall take, subscribe and file with the secretary of state the
otth of office prescribed by the constitution.
Sec. 4. ORGANIZATION OF BOARD; DUTIES. Within thirty
days after the appointment of the members of the state board of
?95
SUBMITTED'TO THE ELECTORS OF ARIZONA, OCTOBER 3, 1933 55
examiners in the basic sciences, as provided in Section 3 of this
article, they shall assemble and organize by the election from their
members of a president, a vice-president, and a secretary-trasurer,
each of whom shall serve for one year, or until their successors are
elected and qualify. Said board shall have authority to precsribe
such reasonable rules and regulations relative to the examination
of applicants in the basic sciences as may be found necessary for
the performance of its duties. As to any matter coming within its
jurisdiction, the board in session may take such testimony as it
may deem necessary in the exercise of its powers and the perform­ance
of its duties under the provisions of this act, and any member
of said board shall have the power to administer oaths in the tak­ing
of such testimony. Three members of the board saIl constitute'
a quorum for the transaction of business. Said board shall have
a common seal which shall be kept by the secretary, whose duty
it shall be to keep a record of a~l proceedings of the board, includ­ing
the register of all applicants for examination therein, preserv­ing
the names, ages, addresses, educational qualifications, and the
result of their examinations, which shall at all times be available
for inspection by any parties in interest. Said board shall meet at
the university of Arizona and there conduct examinations in the
basic sciences four times each year, respectively on the third Tues­day
in December, March, June and September, and may hold such
other meetings at such times and places as the board may deter­mine.
Notice of such meetings Shall be sent by registered mail to
members of the board. Said board may appoint and fix the sal­aries
of an assistant secretary and other necessary employees. Such
employees shall hold their positions at the pleasure of the board.
The compensation of each member of tl;1e board shall be ten dollars
for each day actually spent in the performance of his duties, to­gether
with actual necessary expenses, payable out of the general
fund of the University. Examinations shall be in the basic sciences.
Sec. 5. EXAMINATIONS. Examinations will be written and
consist of ten questions on each subject and be of such a nature as
to constitute an adequate test as to whether the person so examined
has such knowledge of the elementary principles of such basic
science as is taught at the university of Arizona in one year's in­struction
of thirty-six weeks, or as is taught in one year's instruc­tion
of thirty-six weeks at any college or university accredited by
the university of Arizona, or the equivalent thereof.
Sec. 6. FEES. Any person not hereinafter excepted from
the provisions ,of this act desiring to practice healing in this state
shall apply to the secretary of the state board of examiners in
the basic sciences, on blank forms prepared and furnished by said
board, to be examined in the basic sciences at the next examination
-
'7B6 56 . . PAMPHLET CONTAINING AMENDMENTS AND MEASURES, TO BE
therein following the making of such application and for a cer­tificate
of registration in the basic sciences, accompanying such ap­plication
with a fee of twenty dollars and sufficient and satisfac­tory
proof that the applicant is twenty":one years of age or over, is
of good moral character and possesses an education equivalent to
graduation" from an accredited high school of this state; proVided
that no applicant shall be required nor requested to disclose in such
application the professional college or university he may have at­tended
nor the branch or system of healing which he intends to
pursue.
Sec. 7. CERTIFICATE OF REGISTRATION. If in such ex­amination
the applicant attains a grade of seventy-five per cent
in each subject he shall receive a certificate of registration in the
basic sciences, signed by the president and secretary and sealed
with the seal of said board. If he fails in one or two subjects only,
he may be re-examined in the subject or subjects in which he failed
at any examination within one year, without further application
or examination fee, and upon attaining a grade of seventy-five per
cent therein, he shall receive his certificate of registration in the
basic sciences. If he fails in three or more of the subjects, he may
make a new application for examination in all subjects and again
pay the secretary-treasurer of said board the examination fee of
twenty dollars.
Sec. 8. CERTIFICATE WITHOUT EXAMINATION. Any
person, not hereinafter excepted from the provisions of this
act, who was lawfully authorized to practice healing, as by this act
defined, in this state on the date this act takes effect, and who was
on that date regularly licensed or registered in the manner then
by law provided, shall upon application as herein provided, receive
from the state board of examiners in the basic sciences a certi­ficate
of registration in the basic sciences without examination
therein; provided, however, that on or before January 1st, 1934,
every such person shall apply to the secretary of said board for such
certificate of registration, accompanying such application with suf­ficient
and satisfactory"evidence that he was, on the effective date
of this act, lawfully authorized to practice healing or regularly li­censed
or registered according to law in the particular branch or
system of healing by him pursued and specifying in said applica­tion
the branch or system of healing pursued by the applicant, the
school. from which he graduated, if any, and the date of gradua­tion
from said school, together with a fee of three dollars. Such
certificate of registration shall recite that registration is made
solely as a person lawfully authorized to practice healing or licensed
or registered according to law on the date this act takes effect, and
that same was issued without examination in the basic sciences.
SUBMITTED TO THE ELECTORS OF ARIZONA OCTOBER 3. 1933 57
Any person entitled to a certificate of registration in the basic
sciences without examination therein pursuant to the provisions
of this section, who fails to apply for same in the manner herein
provided shall not receive such certificate of registration except
upon application for examination and actual examination in the
basic sciences as hereinbefore provided; provided, however, said
State Board of Examiners in the basic sciences shall after the first
day of January, 1934, upon payment to it of a fee of twenty-five
dollars issue a certificate of registration in the basic sciences with­out
examination to any person who would have been entitled there­to
pursuant to the provisions of this section upon applying there­for
on or before the first day of January, .1934, and who makes ap­plication
therefor in the manner herein provided and shows good
cause why said application was not made on or before the first
day of January, 1934.
Sec. 9 DISPOSAL OF FEES. The secretary - treasurer of
the board of examiners in the basic sciences shall on or before the
third Tuesday in December, March, June and September, transmit
to the bursar of the' university of Arizona a record of all expendi­tures
of the board for the previous quarter, with all fees collected
during such previous quarter, the same to be credited to the general
funa. of the University.
Sec. W. APPEAL FROM BOARD'S DECISION. Anyapplic­cant
who has been denied examination by the board or feels ag­grieved
by the board's decision may within thirty days after such
denial or notice of his failure to pass the examination appeal to
the superior court of any county and such court shall on such ap­peal
inquire into the cause of such denial or failure. If in the opin­ion
of the court admission to the examination was refused or cer­tificate
Withheld without just cause, the court may order the board
to examine the applicant or to issue a certificate. Notice of an ap­peal
from the denial by the board of the right to examination or of
the failure to issue a certificate shall be served by le·::tving with the
secretary of the board an attested copy thereof within thirty days
after said board has notified the applicant of its refusal to examine
him or his failure in the examination as the case may be. Hearings
of such appeals shall proceed in accordance with such rules as the
court may determine.
Sec. 11. VOID CERTIFICATES; CANCELLATION. Any
basic science certificate which is issued contrary to the provisions
of this act shall be void. The certificate issued by the state board
of examiners in the basic sciences shall be automatically revoked
by the revocation of any license issued to such person to practice
the healing art or any branch thereof.
798
58 PAMPHLET CONTAINING AMENDMENTS AND MEASURES, TO liE
Sec. 12. RECORDING OF CERTIFICATES. Each certifi_
cate issued by the board of examiners in the basic sciences shall
be recorded by the secretary of such board with the secretary of
the state board of health.
Sec. 13. PRACTICING WITHOUT CERTIFICATE; PEN­ALTY,
Any person who shall practice the healing art or any
branch thereof without having obtained a valid certificate from the
state board of examiners in basic sciences, except as otherwist
authorized by section 19 of this act, shall be guilty of a misdemean­or,
and shall be punished therefor by a fine not exceeding one hun­dred
dollars or imprisonment in the county jail not more than three
months, or by both such fine and imprisonment.
Sec. 14. FRAUDULENT CERTIFICATE; PENALTY. Any
person who shall obtain or attempt to obtain a basic science cer­tificate
by any dishonest or fraudulent means, or who shall forge,
counterfeit or fraudulently alter any such certificate, shall be guilty
of a misdemeanor and shall be punished therefor by a fine not ex­ceeding
one hundred dollars or imprisonment in the county jail not
more than three months, or by both such fine and imprisonment.
Sec. 15. OBTAINING LICENSE WITHOUT CERTIFICATE;
PENALTY. Any person who shall obtain or attempt to obtain a li­cense
to practice the healing art or any branch thereof from any
board authorized to issue any such license, without presenting to
said licensing board a valid certificate issued by the state board
of examiners in the basic sciences; as by this act required, shall
be guilty of a misdemeanor and shall be punished therefor by a
fine not exceeding one hundred dollars or imprisonment in the
county jail not more than three months, or by both such fine and
imprisonment.
Sec. 16. ISSUING INVALID CERTIFICATE; PENALTY.
Any person who knowingly issufls or participates in the issuance of
a license to practice the healing art or any branch thereof to any
person who has not presented to the licensing board a valid certi­ficate
from the state board of examiners in the basic sciences, or
to any person who has presented to such licensing board any such
certificate obtained by dishonesty or fraud, or any forged or coun­terfeit
certificate, shall be guilty of a misdemeanor and shall be
punished therefor by a fine not exceeding one hundred dollars or
by imprisonment in the county jail not more than three months,
or by both such fine and imprisonment.
Sec. 17. INVESTIGATION: DUTIES OF OFFICERS. The
secretary of the state board of health shall investigate any sup-
posed violation of this act and report to the proper county attorney
of the causes that in his judgment warrant prosecution. Every po­lice
officer, sheriff and peace officer shall investigate supposed vio­lations
of this act and apprehend and arrest all violators thereof.
It shall be the duty of the attorney-general and of the several county
attorneys to prosecute violations of this act, provided that this
power shall not authorize any discrimination or preference to be
made between nor among medical doctors, osteopaths, chiropractors,
naturopaths, christian scientists or other persons regularly licensed
to practice the healing arts in the state of Arizona.
799
SUBMITTED TO THE ELECTORS OF ARIZONA, OCTOBER 3,1933 59
Sec. 18. CALLINGS EXEMPT. This act shall not be con­strued
as applying to optometrists, dentists, midwives, or nurses,
practicing within the limits of their respective callings; nor to af­fect
the practice of their religious tenents by members of any
church, provided they do not administer drugs or medicine nor per­form
surgical or physical operations nor assume the tilte of or hold
themselves out to be physicians or surgeons. Nor shall any provision
of this act be construed to prohibit the rendering of first aid by any
person at the scene of an accident; provided further that the provis­ions
of this act shall not be construed to affect and there is hereby
exempted persons engaged in the operation of pUblic or private lab­oratories
doing pathological, clinical, serological, chemistry, assaying,
bio-chemistry and other kindred, incidental or usual sciences and
research usually allied or carried on therewith.
S€c. 19. LIMITATION OF PROVISIONS. No prOVISIon of
this act shall be construed as repealing any statutory provisions in
force at the time of its passage with reference to the requirements
governing the issuance of licenses to practice the healing art or any
branch thereof. except as herein provided.
Sec. 20. UNCONSTITUTIONALITY. Should any section,
paragraph, sentence, clause, or phrase of this act be declared uncon­stitutional
or invalid for any reason, the remainder of said act shall
not be affected thereby.
The following is the form and number in which the question
will be printed on the Official Ballot.
REFERENDUM ORDERED BY PETITION OF THE PEOPLE
"RELATING TO THE BASIC SCIENCES"
60 PAMPHLET CONTAINING AMENDMENTS AND MEASURES, TO BE
"RELATING TO THE BASIC SCIENCES"
305 No. 0
304 Yes,D
If you favor the above law, vote YES; if opposed vote NO.
.REFERENDUM ORDERED BY PETITION OF THE PEOPLE
304 Yes. D
AN ACT RELATING TO 'THE BASIC SCIENCES; DEFINING
THE SAME AND CREATING A BOARD OF EXAMINERS THEREIN'
PROVIDING FOR THE EXAMINATION AND REGISTRATION OF
PRACTITIONERS OF THE HEALING ARTS; AND PROVIDING
PENALTIES FOR THE VIOLATION HEREOF.
If you favor the above law, vote YES; if opposed, vote NO.
ARGUMENT
(Affirmative)
305 No. 0
800
AN ACT RELATING TO THE BASIC SCIENCES; DEFINING
THE SAME AND CREATING A BOARD OF EXAMINERS THEREIN;
PROVIDING FOR THE EXAMINATION AND REGISTRATION OF
PRACTITIONERS OF THE HEALING ARTS; AND PROVIDING
PENALTIES FOR THE VIOLATION HEREOF.
House Bill 46, Eleventh Legislature, State of Arizona, was en­acted
in response to the demand of a vast number of citizens of the
state that measures be taken to curb the growing influx of empirics
who find it profitable to establish themselves in a state enjoying
the reputation of "the health center of the nation", whither come
numerous unfortunates seeking restoration of their physical well
being,
SUBMITTED TO THE ELECTORS OF ARIZONA. OCTOBER 3. 1933 61
The act provides merely that those intending to hold themselves.
out to the public as being competent practitioners and advisers in
matters involving the lives and health of human beings shall, prior
to being examined and licensed by boards composed of members of
their own school of healing, establish to the satisfaction of an im­partial
board of examiners that they are possessed of a rUdimentary
knowledge of the basic sciences viz., gross anatomy, physiology,
pathology, chemistry, bacteriology and hygiene. The act provides
that the examining board shall be composed of faculty members of
the state university, chosen by the board of regents without regard
to the school of healing to which they subscribe; and no applicant
for examination is required to disclose the system of healing which
he intends to pursue.
The act is aimed at no particular school of healing but has for
its object the protection of the public from incompetents of all
schools. No qualified practitioner will object to demonstrating his
fitness as a prerequisite to obtaining his license; no charlatan
should be permitted to escape reasonable examination concerning
his qualifications by the specious claim of "freedom of choice" in
healing methods.
The continued reputation of Arizona as a state committed to the
protection of the public health, the welfare of yourself, your children
and your family-these considerations require that you vote "YES'"
in favor of this measure.
(SGD) MRS. MILDRED P. FULKERSON
1342 W. Willetta
Phoenix, Arizona.
62 PAMPHLET CONTAINING AMENDMENTS AND MEASURES, TO BE
To be submitted to the qualified electors of the State of Arizona for
their approval or rejection at the
GENERAL ELECTION
to be held
ON OCTOBER 3rd, 1933.
Referendum ordered by petition of the People and filed in the
office of the Secretary of state, June 12th, 1933, and printed in pur­suance
of Paragraph 1746, Chapter 34, Article 1, Revised Code 01
Arizona, 1928.
JAMES H. KERBY, Secretary Of State.
(On Official Ballot Nos. 306-307)
CHAPTER 88
(HOUSE BILL NO. 115)
ELEVENTH LEGISLATURE, Regular Session.
AN ACT
RELATING TO JUDGMENT OF FORECLOSURE, AND AMEND­ING
SEC. 2324, REVISED CODE OF 1928.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF
ARIZONA:
Section 1. Sec. 2324, Revised Code of 1928, is hereby amend­ed
to read as follows:
Sec. 2324. JUDGMENT OF FORECLOSVRE. When a mort­gage
or deed of trust is foreclosed, the court shall render judgment
for the entire amount found to be due, and must direct the mort­gaged
property, or so much thereof as is necessary, to be sold to
satisfy the same; provided, that when a note, secured by a first
mortgage or deed of trust on real property, is foreclosed and the
property sold to satisfy such judgment, no deficiency judgment
can be had against the defendant unless the complaint specifically
asks for a deficiency judgment. If such deficiency judgment is con­tested
by the defendant, the plaintiff must prove on the trial that
at the time the note and mortgage, or deed of trust, were executed
the real property was not of a value in excess of the amount re-
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SUBMITTED TO THE ELECTORS OF ARIZONA. OCTOBER 3. 1933 63
maining due on the note or that the depreciation in value was
caused by some act of the defendant or the original mortgagor, and
the question of such value shall be a question of fact. If the court
or a jury selected to try the action finds that the plaintiff has
failed to establish such f